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in this video weamp;#39;re going to talk about how to dispose of the underapplied or overapplied manufacturing overhead balance so thereamp;#39;s two accepted approaches and one is to close that balance to cost of goods sold so youamp;#39;re basically burying uh this difference into cost of goods sold completely uh the second approach is instead of just burying it all in cost of goods sold you allocate it and you allocate it among the following accounts work in process finished goods and cost of goods sold now this kind of is a more intuitive approach here that to allocate it because youamp;#39;re basically youamp;#39;ve youamp;#39;ve over applied to all these accounts right youamp;#39;ve been applying overhead uh and and now youamp;#39;re just basically trying to undo uh the mistake so to speak or the the incorrect estimation uh whereas with this approach is easier but weamp;#39;re just kind of dumping it all and cost a good sold so letamp;#39;s deal with the easier of the t
