Under Process Costing,the ________ Account Is Credited to Adjust for Overallocated

question 109

Multiple Choice

Under process costing,the ________ account is credited to adjust for overallocated overhead costs.The perpetual inventory system is used.

• A) Cost of Goods Sold
• B) Sales Revenue
• C) Manufacturing Overhead
• D) Finished Goods Inventory

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Definitions:

Finished Goods Inventory

Finished goods inventory comprises products that have completed the manufacturing process but have not yet been sold to customers.

Accounting Report

A documented record of financial activities and the financial status of a business or entity, used for analysis and decision-making.

Equivalent Units

A concept used in cost accounting to convert the amount of work in process into a number of completed units of output.

Department's Output

The total amount of goods or services produced by a specific department within a given period.