Answer:
Hie, the question is missing a list of options;
However the important steps to approach the questions are explained below.
Overhead is Over-applied when : Applied Overheads > Actual Overheads
The amount of overapplied overheads usually adjust the Cost of Goods Sold as follows :
Cost of Goods Sold (debit)
Overheads (credit)
This entry ensures that the costs of sales are not understated !
Alternatively the over-applied overheads can be adjusted to the Cost of Sales and other Inventory balances at the end of the period in pro-rata (Weight of their total) as follows
Cost of Goods Sold (debit)
Finished Goods Inventory (debit)
Work in Process Inventory (debit)
Raw Materials Inventory (debit)
Overheads (credit)
