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Question - Roberts Manufacturing had a remaining credit balance of $18,000 of in its under and over-applied factory overhead account at year-end. It also had year end balances in the following accounts:
Work in Process $20,000
Finished Goods 30,000
Cost of Goods Sold 50,000
Total $100,000
a. Prepare the closing entry for the $18,000 of under-applied overhead, assuming that the balance is not considered to be material.
b. Prepare the closing entry for the $18,000 of under-applied overhead, assuming that the balance is considered to be material.
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