The journal entry to record the application of overhead costs to production includes:
A) a credit to Manufacturing Overhead.
B) a credit to Work in Process Inventory.
C) a credit to Finished Goods Inventory.
D) a credit 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 and crediting Manufacturing Overhead, as it reflects the allocation of overhead costs to the production process.

The Journal Entry to Record the Application of Overhead Costs