Question

The debit balance of the overheads adjustment account is transferred to

Answer 1

Explanation:

Administrative overhead cost is debited to this account; the amount of overhead recovered in the finished goods sold is credited to this account. It may be, alternatively, transferred to Costing Profit and Loss Account if it is not charged to Cost of Goods Sold.

Answer 2

Introduction:

Administrative Overheads are the costs of all operations related to an organization's general management and administration.

Explanation:

Administrative overhead costs are deducted from this account, while overhead recovered in completed items sold is credited to it. If it is not charged to Cost of Goods Sold, it may be shifted to Costing Profit and Loss Account.