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If, at the end of the accounting period, there is a balance in the manufacturing overhead account,
then the following has occurred:
If there is a debit balance, the overhead is considered underapplied overhead, and if there is a
credit balance, the overhead is considered overapplied overhead.
If there is a credit balance, the overhead is considered underapplied overhead, and if there is a
debit balance, the overhead is considered overapplied overhead.
If there is a credit balance, the manufacturing overhead account needs to adjusted with a debit to
cost of goods sold.
None of the above
A If there is a debit balance, the overhead is considered underapplied overhead, and if there is a
credit balance, the overhead is considered overapplied overhead.
B If there is a credit balance, the overhead is considered underapplied overhead, and if there is a
debit balance, the overhead is considered overapplied overhead.
C If there is a credit balance, the manufacturing overhead account needs to adjusted with a debit
to cost of goods sold.
D None of the above

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If- at the end of the accounting period- there is a balance in the man.docx

  • 1. If, at the end of the accounting period, there is a balance in the manufacturing overhead account, then the following has occurred: If there is a debit balance, the overhead is considered underapplied overhead, and if there is a credit balance, the overhead is considered overapplied overhead. If there is a credit balance, the overhead is considered underapplied overhead, and if there is a debit balance, the overhead is considered overapplied overhead. If there is a credit balance, the manufacturing overhead account needs to adjusted with a debit to cost of goods sold. None of the above A If there is a debit balance, the overhead is considered underapplied overhead, and if there is a credit balance, the overhead is considered overapplied overhead. B If there is a credit balance, the overhead is considered underapplied overhead, and if there is a debit balance, the overhead is considered overapplied overhead. C If there is a credit balance, the manufacturing overhead account needs to adjusted with a debit to cost of goods sold. D None of the above