Question

Can anyone explain in simple words this questions. I read the text and it's confusing me even more.

Explain why the Factory Overhead Balance must be disposed of at year end?

Thank you

Answer 1

please give positive rating your feedback is valuable to me.

In case , any problem please leave a comment.

Answer-

Discard industrial facility overhead toward the year's end in two different ways:

1.factory overheads parity can be dispensed in accounts like work-in-progress and completed products.

2. Moved the entire sum in the expense of merchandise s soldCOGS)

Reason:

The purpose behind discarding plant overheads is that these overheads are identified with the current year working costs. Along these lines, can not be moved to the following year. Hence,it should be either moved to the expense of merchandise sold (COGS) record or allotted to the above records.