If Manufacturing Overhead Has Been Underapplied During the Year the Adjusting

question 26

Multiple Choice

If manufacturing overhead has been underapplied during the year the adjusting entry at the end of the year will show a

• A) debit to Manufacturing Overhead.
• B) credit to Cost of Goods Sold.
• C) debit to Work in Process Inventory.
• D) debit to Cost of Goods Sold.

---

Definitions:

Equitable Remedy

A legal remedy, usually issued by a court, which provides a solution deemed fair and just in situations where monetary damages are not sufficient.

Misrepresented

The act of presenting facts or information in a false or misleading way.

Breach Of Contract

The violation of a contractual obligation by failing to perform one's own promise, by hindering another party's performance, or by making it impossible.

Rectification

A correction, by the court, of the wording of a mistake in a contract.