The journal entry to record the actual (not applied) overhead costs incurred includes:
A) a debit to Manufacturing Overhead.
B) a debit to Work in Process Inventory.
C) a debit to Finished Goods Inventory.
D) a debit to Cost of Goods SolD.
When actual overhead costs are incurred, debit Manufacturing Overhead account. The credit would be to Cash, Payables, Prepaid Assets, or Accumulated Depreciation. (In contrast, when applying manufacturing overhead costs based on a predetermined rate, credit the Manufacturing Overhead account.)

Question

Quizplus · Accepted Answer

When actual overhead costs are incurred, they are debited to the Manufacturing Overhead account. The other options are not appropriate because they do not reflect the actual overhead costs incurred.

The Journal Entry to Record the Actual (Not Applied) Overhead