XYZ uses job costing Actual manufacturing overhead for the p

XYZ uses job costing. Actual manufacturing overhead for the period is

$20,400

while allocated manufacturing overhead is

$18,400.

What entry will close the manufacturing overhead balance?

XYZ uses job costing. Actual manufacturing overhead for the period is $20,400 while allocated manufacturing overhead is $18,400. What entry will close the manufacturing overhead balance? A. Debit the Manufacturing Overhead account and credit the Work-in-Process account for $2,000. B. Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,000. O C. Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,000. D. Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,000.

Solution

Option b is correct

As if a manufacturing overhead shows a debit balance it means the overhead are underapplied