The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for August would include the following:
A)debit to Work in Process of $11,650
B)debit to Work in Process of $400
C)credit to Work in Process of $11,650
D)credit to Work in Process of $400

Question

Quizplus · Accepted Answer

Underapplied or overapplied overhead is typically adjusted by debiting or crediting the Work in Process account. In this case, a debit to Work in Process of $400 indicates an adjustment for underapplied overhead.

The Journal Entry to Record the Allocation of Any Underapplied