18

QUESTION 18 At the end of the year, Lilly Company's accounts showed a $25,000 credit balance in Manufacturing Overhead. In addition, the company had the following account balances: Work in Process Inventory $ 100,000 Finished Goods Inventory 400,000 Cost of Goods Sold 1,500,000 a. Prepare the necessary journal entry to close the overhead account if the balance is considered immaterial. b. Prepare the necessary journal entry to close the overhead account if the balance is considered material