Question

The applied overhead is compared to the actual overhead, with any discrepancy going into one of the following three accounts: goods in process inventory, finished goods inventory, or cost of goods sold.

a) true
b) false

Answer 1

b) false

Step-by-step explanation:

There are 2 methods of allocating under-applied / over-applied overheads under of the methods any discrepancy is allocated to all of the three accounts, that is finished goods, work-in-progress and cost of goods sold. Under the other method, all of it is allocated to cost of goods sold. Hence, given statement is false