Altoid company sold most of its inventory produced during the period. the manager needs to close the $1,200 balance of manufacturing overhead. the company uses a predetermined manufacturing overhead rate to allocate manufacturing overhead to individual jobs. the jobs were undercosted during the period. what is the correct entry to close the books at the end of the period?

Cost of good sold                1200

         manufacturing overhead         1200

Explanation:

Giving the following information:

The manager needs to close the $1,200 balance of Manufacturing Overhead. The jobs were under-costed during the period.

We will close the under-allocated overhead to cost of goods sold. As it was under-allocated, we need to add it to the cost of goods sold.

Cost of good sold                1200

         manufacturing overhead         1200

answer; (inseparability);

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