Zoey uses normal costing with applied Material Overhead for their landscaping business. They did well at budgeting and estimating their costs throughout the year, however, they over applied their Material Overhead by a small margin. At year end how would Zoey make the adjustments to clear out the Material Overhead account?

A) Cost of Goods Sold on the income statement.

B) On the balance sheet under Finished Goods Inventory.

C) Prorated to the Work-in-Process Inventory.

D) Cost of Goods Sold on the balance sheet.

Answer rating: 100% (QA)

Answer C Prorated to the WorkinProcess Inventory Explanation The WorkinProcess Inventory would need ... View the full answer