If a Manufacturing Firm Ends the Year with Underapplied Overhead

question 37

Multiple Choice

If a manufacturing firm ends the year with underapplied overhead, one method of treatment is

• A) debit manufacturing overhead, credit cost of goods sold.
• B) debit cost of goods sold, credit manufacturing overhead.
• C) debit work in process, credit manufacturing overhead.
• D) debit finished goods inventory, credit manufacturing overhead.