If Pope Inc. uses standard costing, the overhead allocated to work-in-process is recorded as a
A) debit to Manufacturing Overhead Allocated and a credit to Work-in-Process.
B) debit to Work-in-Process and credit to Manufacturing Overhead Control.
C) debit to Manufacturing Overhead Allocated and a credit to Manufacturing Overhead Control.
D) debit to Manufacturing Overhead Control and a credit to Manufacturing Overhead Allocated.
E) debit to Work-in-Process and a credits to Manufacturing Overhead Allocated.

Question

Quizplus · Accepted Answer

When using standard costing, the overhead allocated to work-in-process is recorded by debiting Work-in-Process (increasing the balance of this asset account to reflect the allocation of overhead costs to production) and crediting Manufacturing Overhead Allocated (reflecting the amount of overhead applied to production, which is an entry made to clear or reduce the balance of the Manufacturing Overhead account, indicating that this portion of overhead has been allocated).