If Overapplied or Underapplied Overhead Is Material, It Should Be

Multiple Choice

If overapplied or underapplied overhead is material, it should be disposed of by allocating it to:

A) Work in process inventory.
B) Finished goods inventory and work in process inventory.
C) Work in process inventory, finished goods inventory, and cost of goods sold.
D) Raw materials inventory, work in process inventory, and finished goods inventory.
E) Cost of goods sold and finished goods inventory.