Witty, Inc. uses a job-order cost system and had the following data available for 20X1.

-The journal entry to record the application of the factory overhead would include a
A) debit to Factory Department Overhead Control for $143,000.
B) debit to WIP Inventory for $143,000.
C) credit to Factory Department Overhead Control for $146,000.
D) credit to WIP Inventory for $146,000.

Question

Witty, Inc. uses a job-order cost system and had the following data available for 20X1.
 
-The journal entry to record the application of the factory overhead would include a
A) debit to Factory Department Overhead Control for $143,000. 
B) debit to WIP Inventory for $143,000. 
C) credit to Factory Department Overhead Control for $146,000. 
D) credit to WIP Inventory for $146,000.

Quizplus · Accepted Answer

The application of factory overhead is recorded by debiting Work in Process (WIP) Inventory, as it represents the allocation of overhead costs to the production process.