The entry to allocate manufacturing overhead costs to work in process requires a debit to work in process.

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are indirect costs that cannot be traced to a specific job or product. These costs include expenses such as rent, utilities, and equipment depreciation. To allocate these costs to Work in Process, a debit entry is required to reflect the increase in the manufacturing overhead control account, and a credit entry is made to allocate the costs to Work in Process as an indirect cost.

The Entry to Allocate Manufacturing Overhead Costs to Work in Process