If It Is a Material Amount, Overapplied or Underapplied Overhead

Multiple Choice

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

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