Question: EXERCISE 16 LO.2 (Under-applied or over-applied overhead) At the end of2008, Westmeier Corporations accounts showed a $33,000credit balance in Manufacturing Overhead Control. In addition, thecompany

EXERCISE 16

LO.2 (Under-applied or over-applied overhead) At the end of2008, Westmeier Corporations accounts showed a $33,000credit balance in Manufacturing Overhead Control. In addition, thecompany had the following account balances:

Work in ProgressInventory $192,000

Finished GoodsInventory 48,000

Cost of GoodsSold 360,000

a. Prepare the necessaryjournal entry to close the overhead account of the balance isconsidered immaterial.

b. Prepare the necessary journalentry to close the overhead account of the balance is consideredmaterial.

c. Which method do youbelieve is more appropriate for the company and why.

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