When manufacturing overhead is allocated, the amount is recorded as a debit to Finished goods and a credit to Work in process.

Name: When manufacturing overhead is allocated, the amount is recorded as a debit to Finished goods and a credit to Work in process.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When manufacturing overhead is allocated, the amount is typically recorded as a debit to Work in Process (not Finished Goods) and a credit to Manufacturing Overhead, reflecting the assignment of overhead costs to the production process.

When Manufacturing Overhead Is Allocated, the Amount Is Recorded as a Debit