At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $1,200, Garcia Company—credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.
Adjusting entry in the books of Shimeca CompanyDateAccount TitleDebitCreditDec-31 Cost of Goods sold1,200Manufacturing Overhead1,200 Adjusting entry in the books of Garcia CompanyDate…