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A manufacturer uses job costing (normal cost approach). At year end, the company has incomplete jobs and finished jobs that have not been sold. During

A manufacturer uses job costing (normal cost approach). At year end, the company has incomplete jobs and finished jobs that have not been sold. During the year, the company sold many jobs. At year end, the manufacturer closes over/under-allocated MOH to the relevant accounts based upon the allocated MOH in the accounts. For the year, the company reported an over-allocation of MOH. The closing entry ______ the account balance for finished goods.

a. increases b. decreases c. has no effect on

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