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Unformatted text preview: overhead to cost of goods sold. An alternative method, although more complex, is to allocate the under- or over-applied balance among the work-in-process inventory, finished goods inventory, and cost of goods sold accounts. The $2,600 account balance in factory overhead in Figure 5 is relatively small. To zero out the account balance and transfer it to cost of goods sold, the entry would be: General Journal Date Account Title and Description Ref. Debit Credit 20X0 Dec. 31 Cost of Goods Sold 2,600 Factory Overhead 2,600 Transfer under-applied overhead...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09