Question

When overhead is underapplied, a _____ must be made to the Manufacturing overhead account to eliminate the balance.

Answer 1

Based on the question above, the correct answer goes thus:

• cost of goods

Underapplied overhead

Underapplied overhead is recorded as a prepaid expense on the balance sheet and then corrected through increasing cost of goods sold at the end of the time period.

In conclusion, we can conclude that the correct answer is cost of goods

Learn more about Underapplied overhead here: https://brainly.com/question/4930275