Under- or Overapplied Manufacturing Overhead at Year-End Is Most Commonly

question 24

Multiple Choice

Under- or overapplied manufacturing overhead at year-end is most commonly:

• A) charged or credited to Work-in-Process Inventory.
• B) charged or credited to Cost of Goods Sold.
• C) charged or credited to a special loss account.
• D) prorated among Work-in-Process Inventory, Finished-Goods Inventory, and Cost of Goods Sold.
• E) ignored because there is no effect on the Cash account.

---

Definitions:

Smooth Running

The operation of a system, process, or machine in a manner that is efficient, without interruptions, and effectively managed.

Medical Office

A facility where medical professionals provide outpatient services, including diagnosis, treatment, and patient care management.

Indefinitely

A term used to describe an action or event that has no specified end time.

Administrative Supplies

Administrative supplies include the essential office items and materials used for administrative tasks, such as filing, scheduling, and documentation.