At December 31, balances in Manufacturing Overhead are Shimeca Companydebit $1,260, Garcia Companycredit $973.

Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit Credit

Shimeca Company

Dec. 31 Cost of Goods Sold 1260

Manufacturing Overhead 1260

Garcia Company

Dec. 31 Manufacturing Overhead 973

Cost of Goods Sold 973

discuss the significance of the accounting concept and how your arrived at your solution?