Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account.

Question

Quizplus · Accepted Answer

This is correct as manufacturing overhead costs are allocated to Work-in-Process Inventory using a predetermined overhead rate, which is based on an expected level of activity. This allocation is recorded by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account.

Manufacturing Overhead Is Allocated by Debiting the Work-In-Process Inventory Account