How Does a Company Eliminate Any Immaterial Balance in the Manufacturing

question 154

Multiple Choice

How does a company eliminate any immaterial balance in the Manufacturing Overhead account at the end of the year?

• A)The amount is moved to Cost of Goods Sold.
• B)The amount remains in the Manufacturing Overhead Expense account and appears on the income statement.
• C)The amount is closed to Retained Earnings.
• D)The amount is moved to Finished Goods Inventory.