A debit to Work-in-Process Inventory is sometimes accompanied by a credit to:

Question

Quizplus · Accepted Answer

A debit to Work-in-Process Inventory represents the cost of direct materials, direct labor, and manufacturing overhead that have been added to products that are in the process of being manufactured. A credit to Manufacturing Overhead is often used to record any indirect costs that have been incurred but not yet allocated to specific products. Therefore, C is the best choice as it shows the credit to Manufacturing Overhead.

A Debit to Work-In-Process Inventory Is Sometimes Accompanied by a Credit