When there is "SIGNIFICANT" over or under applied manufacturing overhead difference between applied overhead and actual overhead at the end of the period (for reason such as bad predetermined overhead rate lets say due to new manufacturing start-up), I understand you need to prorate the overhead difference between budgeted and actual back to WIP, Finished Goods Inventory, and Cost of Goods Sold, accounts based on that period's ending balance/activity. This is fine, my questions is how does this "SIGNIFICANT" difference amounts in the above mentioned G/L accounts get taken out as products move from WIP to Finished Goods Inventory, and from Finished Goods Inventory to Cost of Goods Sold at a future period as business activities continue? Thanks in advance for answering my question.