G At the end of a month, how is over or under applied overhead reported on the financial statements

Hie your question has missing information, i tried to look it up online but i could not find it.

Here below is some explanation on the g part of your question on the treatment of over or under applied overhead on the financial statements.

At the end of the reporting period, the entity compares its actual manufacturing overhead to its applied manufacturing overhead (used in determining product cost)

under- applied or over- applied

If actual manufacturing overhead > applied manufacturing overhead, the overheads are under- applied.

and

If actual manufacturing overhead < applied manufacturing overhead, the overheads are over- applied.

reporting on the financial statements

under- applied are added to the cost of sales in the trading account. this increases the costs of sales amount.

under- applied are deducted from the cost of sales in the trading account. this decrease the costs of sales amount

Alternatively,

under -applied overheads are allocated to inventory balances including cost of sales and added to the total of the  balances as the end of the period.

and

over -applied overheads are allocated to inventory balances including cost of sales and deducted from the total of the balances as the end of the period.

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