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Accounting Assignment

Question

What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What adjustment is made for overapplied overhead?

Solution

Title: Accounting Assignment
Length: 2 pages (658 Words)
Style: MLA

Preview

Accounting Assignment

The over-applied and the under-applied manufacturing overhead is explained as the difference between the cost overhead that is related to work that is in progress and the overhead cost of manufacturing which is experienced during a given period of time. The over-head or under-head are given by considering the results from the differences. Over- applied manufacturing is experienced when the manufacturing cost overhead over a period of time is found to be less than the manufacturing cost overhead that is applied to work in progress. On the other hand, under-applied manufacturing is experienced when the manufacturing cost overhead over a period of time is found to be more than the manufacturing cost overhead that is related to work in progress.

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