Which of the Following Methods for Zeroing Out the Over-Applied

question 51

Short Answer

Which of the following methods for zeroing out the over-applied or under-applied overhead is the easiest method, but the least accurate? a. Correct rates at year end.
B) Write-off to the miscellaneous expense account.
C) Prorate the under-applied or over-applied amount among the inventory accounts.
D) Write-off to cost of goods sold.
E) None of the above.

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