The Work-in-Process Inventory account of a department is credited when overallocation of manufacturing overhead occurs in that department.

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The Work-in-Process Inventory account is debited (not credited) when manufacturing overhead is allocated to it, regardless of whether there is an overallocation or underallocation. Credits to the Work-in-Process Inventory account typically reflect the transfer of costs to the next stage in the production process, not adjustments for overhead allocation.

The Work-In-Process Inventory Account of a Department Is Credited When