Question: Why is it acceptable to close overallocated or underallocated manufacturing

Why is it acceptable to close overallocated or underallocated manufacturing overhead to Cost of goods sold rather than allocating it proportionately to Work in process inventory, Finished goods inventory, and Cost of goods sold? Under what circumstances would it be advisable to allocate the overallocated or underallocated manufacturing overhead to Work in process inventory, Finished goods inventory, and Cost of goods sold?


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  • CreatedApril 30, 2015
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