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The appropriate method for the disposition of underapplied or overapplied factory overhead ?

1- Is to COGS only .

2- Is to finished goods inventory only .

3- In between WIP, F.G. inventory and COGS .

4- Depends on the significance of the amount .

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Question added by Deleted user
Date Posted: 2015/10/10

4- Depends on the significance of the amount

Malik Saleem Iqbal
by Malik Saleem Iqbal , Assistant Finance Manager , Ali Zaid Al-Quraishi & Brothers Co LTD

3- In between WIP, F.G. inventory and COGS .

If amount is immaterial then fully charge to COGS.

 

It will be more appropriate to add the figures of MOH Actual & applied.

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