At the end of the year any balance in the Manufacturing Overhead account is generally eliminated by adjusting

A) Work In Process Inventory.
B) Finished Goods Inventory.
C) Cost of Goods Sold.
D) Raw Materials Inventory.

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savanna Bacon · Accepted Answer

Final Answer : C, Explanation :  The Manufacturing Overhead account represents indirect costs incurred during the production process, such as rent and utilities. These costs cannot be directly traced to a particular job or product, so they are allocated to all of the products manufactured based on a predetermined overhead rate. At the end of the year, any remaining balance in the Manufacturing Overhead account is closed out or eliminated by adjusting the Cost of Goods Sold account. This is done to ensure that all indirect costs are properly allocated to the products sold during the year, and to accurately reflect the true cost of goods sold. Therefore, the correct answer is C.

At the end of the year any balance in the Manufacturing Overhead account is generally eliminated by adjusting

A) Work In Process Inventory.
B) Finished Goods Inventory.
C) Cost of Goods Sold.
D) Raw Materials Inventory.

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Learning Objectives

Related questions

At the end of the year any balance in the Manufacturing Overhead account is generally eliminated by adjustingA) Work In Process Inventory.B) Finished Goods Inventory.C) Cost of Goods Sold.D) Raw Materials Inventory.

Definitions

Learning Objectives

Learning Objectives

Related questions

At the end of the year any balance in the Manufacturing Overhead account is generally eliminated by adjusting

A) Work In Process Inventory.
B) Finished Goods Inventory.
C) Cost of Goods Sold.
D) Raw Materials Inventory.