In process costing, the journal entry to record factory overhead applied would include a _____.
A)debit to Factory Overhead
B)debit to Work-in-Process Inventory, Department Name
C)credit to Cost of Goods Sold
D)credit to Finished Goods

Question

Quizplus · Accepted Answer

Factory overhead applied is added to the cost of products being manufactured, so it is debited to Work-in-Process Inventory. This reflects the allocation of indirect manufacturing costs to products still in the production process.

In Process Costing, the Journal Entry to Record Factory Overhead