In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:
A)a credit to the Work in Process inventory account.
B)a debit to Cost of Goods Sold.
C)a credit to the Manufacturing Overhead account.
D)a debit to the Manufacturing Overhead account.

Question

Quizplus · Accepted Answer

In a job-order costing system, when overhead is applied to jobs, the Manufacturing Overhead account is credited to reduce it, reflecting the allocation of overhead costs to the Work in Process inventory account.

In a Job-Order Costing System, the Journal Entry to Record