Luca Company over applied manufacturing overhead during 2022. Which one of the following is part of the year-end entry to disposeof the over-applied amount assuming the amount is material?a decrease to Applied Overheadan increase to Finished Goods Inventorya decrease to Work in Process Inventoryan increase to Cost of Goods Sold

Overapplied overhead means the applied overhead is greater than the actual overhead

Answered: he over-applied amount assuming the…

he over-applied amount assuming the amount is mat O a decrease to Applied Overhead O an increase to Finished Goods Inventory O a decrease to Work in Process Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Luca Company over applied manufacturing overhead during 2022. Which one of the following is part of the year-end entry to dispose
of the over-applied amount assuming the amount is material?
a decrease to Applied Overhead
an increase to Finished Goods Inventory
a decrease to Work in Process Inventory
an increase to Cost of Goods Sold

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