Necessary journal entry to close the overhead account

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At the end of 2010, Jackson Tank Company's accounts showed a $66,000 credit balance in Manufacturing Overhead Control. In addition, the company had the following account balances:.

Work in Process Inventory $384,000

Finished Goods Inventory 96,000

Cost of Goods Sold 720,000

a. Prepare the necessary journal entry to close the overhead account if the balance is considered immaterial.

b. Prepare the necessary journal entry to close the overhead account if the balance is considered material.

c. Which method do you believe is more appropriate for the company and why?

Reference no: EM13143396

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