Underallocation of Manufacturing Overhead Would Require Which of the Following

question 83

Multiple Choice

Underallocation of manufacturing overhead would require which of the following year-end adjustments?

• A) A credit to Finished goods inventory
• B) A credit to Manufacturing overhead
• C) A debit to Work-in process inventory
• D) A credit to Cost of goods sold

---

Definitions:

Debtor

An individual or entity that owes money or services to another entity.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American jurisdictions.

Priority Rule

A principle used to establish the order of importance or precedence among several claims or interests against the same asset or legal right.

Artisan's Lien

A legal claim allowing a worker or service provider to retain possession of a client's property until payment for services rendered on that property is received.