Manufacturing
Closing Over-applied Overhead
Adjusting COGS when the factory was more efficient than the standard estimate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Manufacturing Overhead (Applied) | Clearing | 5,000.00 | - |
| Manufacturing Overhead (Control) | Expense (-) | - | 4,500.00 |
| Cost of Goods Sold | Expense (-) | - | 500.00 |
💡 Accountant's Note
The final closing entry to zero out the temporary overhead accounts and reduce COGS for the 'savings' achieved.
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