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over-allocation okay so as I mentioned to complete the entire process remember we start the materials signing Kostas labor signing a cost of indirect materials and indirect cost into work and process now from this category here we want to decide what is the amount of cost that actually transfers to finish goods what is the cost of the completed goods thats ready for sale okay so this is a portion that were trying to get to and then at the end we want to adjust the under allocation over allocation apart so first of all when it becomes finished goods assuming the total cost is six hundred forty-four thousand six hundred after calculating measuring the cost of the completed goods so of these three categories of cost the actual cost incurred that turns into finished goods cost as much and we transfer it over to finished goods inventory account so this is the first entry their finished goods inventory you can understand the same as the inventory category you learned in financial accountin