The document discusses the computation and recording of over- or under-applied overhead costs. It includes instructions for preparing a journal entry to close these overhead amounts to the cost of goods sold. A worksheet is provided for recording the entry, emphasizing that debits should be entered before credits.

1. QS 15.18 (Algo) Computing and recording over- or underapplied everhead LO P. 4 fstor cost is 3
iz1o00 compere ne under or overnpoled ovehead. Yrepare tne journal entry to ciose over- or
unaerappiled overnead to cost or soods Sola. Journal entry worksheet Record the entry to close
over- or underapplied overhead. Note: Enter debits before credits.