The journal entry to record the application of overhead costs to production 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 overhead costs are applied, debit Work in Process Inventory and credit Manufacturing OverheaD.

Question

Quizplus · Accepted Answer

The application of overhead costs to production involves debiting Work in Process Inventory to reflect the allocation of overhead costs to the products being manufactured.

The Journal Entry to Record the Application of Overhead Costs