Sue 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 Sue make the adjustments to clear out the Material Overhead account? On the balance sheet under Finished Goods Inventory. Cost of Goods Sold on the income statement. Prorated to the Work-in-Process Inventory. Cost of Goods Sold on the balance sheet