At the end of the fiscal year, the balance in Factory Overhead is small. The balance will be a. transferred to Work in Process b. allocated between Work in Process and Finished Goods c. transferred to Finished Goods d. transferred to Cost of Goods Sold

Question

Giovani Ortiz

Business

6 April, 00:52

At the end of the fiscal year, the balance in Factory Overhead is small. The balance will be a. transferred to Work in Process b. allocated between Work in Process and Finished Goods c. transferred to Finished Goods d. transferred to Cost of Goods Sold

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Answers (1)

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Luca Chung · Answer 1

d. transferred to Cost of Goods Sold

Explanation:

Given that

Balance in the factory overhead is small

So, the balance is normally transferred to the cost of good sold as the factory overhead consists of the indirect cost which are required to producing a product while the cost of goods sold is the total cost which is incurred to manufacture the cost. It involves direct cost as well as the indirect cost