At the end of the year a company has a $1,200 debit balance in Manufacturing Overhead. If this amount is considered immaterial, the company will:. a) make an adjusting entry by debiting Manufacturing Overhead Applied for SI,200 and crediting Manufacturing Overhead for $1,200. b) make an adjusting entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200. c) make no adjusting entry because differences between actual overhead and the amount applied are a normal part of job costing and will average out next year. d) make an adjusting entry by debiting Manufacturing Overhead Expense for $1,200 and crediting Manufacturing Overhead for $1,200.

c) make no adjusting entry because differences between actual overhead and the amount applied are a normal part of job costing and will average out next year.

Explanation:

Remember, in accounting, a financial transaction is often considered immaterial when it is deemed insignificant or not useful to the accounting process.

Hence, based on this understanding, the $1,200 debit balance is considered immaterial by the company because differences between actual overhead and the amount applied are a normal part of job costing and will average out next year.

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