Why Does the Manufacturing Overhead Control Account (Debit)need to Equal

question 8

Essay

Why does the Manufacturing Overhead Control account (debit)need to equal the Manufacturing Control account (credit)? What will be the effect of having an end of year remaining balance, debit or credit, on the evaluation of profitability?

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Definitions:

Correspondence

The act of communication by exchanging letters, emails, or other forms of messages.

Chronological

Organized or occurring in order of time of occurrence, often used in timelines, histories, and narratives to show sequence.

Cause-and-effect

A relationship where one event (the cause) leads directly to another event (the effect).

Problem-solution

A method of organizing information or arguments that first identifies a problem and then proposes one or more solutions for it.