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Cost of Goods Sold
The immediate expenses related to manufacturing products sold by a business, encompassing both materials and labor.
Overapplied
Refers to the situation where the allocated manufacturing overhead cost is greater than the actual manufacturing overhead cost incurred.
Underapplied
A situation in which the allocated manufacturing overhead costs are less than the actual overhead costs incurred.
Raw Materials
Basic materials and components that are used in the manufacturing process to produce finished goods.
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