The entry to allocate manufacturing overhead costs to production involves which of the following?

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are allocated to production based on a predetermined overhead rate, which is calculated by dividing estimated overhead costs by an estimated allocation base. The entry to allocate manufacturing overhead costs to production involves debiting the work in process inventory account for the standard rate of overhead times the standard quantity of the allocation base allowed for actual output. This entry helps to track the overhead costs that are incurred during the production process and ensures that the cost of goods sold reflects the actual manufacturing costs. Therefore, choice C is the best choice.

The Entry to Allocate Manufacturing Overhead Costs to Production Involves