If it is a material amount overapplied or underapplied overh

If it is a material amount, overapplied or underapplied overhead should be disposed of by allocating it to: Select one: a. Cost of goods sold and finished goods. b. Finished goods and goods in process. c. Goods in process, finished goods, and cost of goods sold. d. Goods in process e. Raw materials, goods in process, and finished good

Solution

Answer C= Goods in process, finished goods, and cost of goods sold.

Explanation to the answer:

If there is a material amount of over applied or under applied overhead then it should be allocated to WIP, finished goods, cost of goods sold so the answer is option C