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Sagot :
For a firm that uses a single manufacturing overhead account, the journal entry to write off overapplied manufacturing overhead includes a debit to manufacturing overhead because overhead is overapplied, cost of goods sold is credited and manufacturing overhead is debited.
The total of all indirect costs spent during the manufacture of a product is known as the manufacturing overhead cost. Along with the direct expenses for materials and direct labor, it is included in the price of the finished product.
Indirect labor; indirect materials, supplies, and repair parts; rent and utilities; depreciation; and financial expenses are the five main categories of manufacturing overhead.
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