Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during August.During the same period,the Manufacturing Overhead applied to Work in Process was $75,000.The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Question

Quizplus · Accepted Answer

Actual Manufacturing Overhead costs are recorded with a debit to the Manufacturing Overhead account, so the correct answer is A. A credit to manufacturing overhead would decrease the balance, which is not appropriate in this situation. Choices C and D involve the Work in Process account, but they are not the correct answer because neither of them represents the actual incurrence of Manufacturing Overhead costs.

Stickles Corporation Incurred $79,000 of Actual Manufacturing Overhead Costs During