Haverhill Products just completed job number 440.In addition to direct labour and direct materials cost,Haverhill allocated $450 of manufacturing overhead to the job.Which of the following describes the correct journal entry to record the allocation of overhead to the job?

Question

Quizplus · Accepted Answer

When allocating overhead to a job, the journal entry should debit Work in Process (WIP) to reflect the increase in costs incurred in the production of the job, and credit Manufacturing Overhead (MOH) to reflect the cost being moved from the MOH account to the WIP account. Therefore, the correct journal entry in this scenario would be to debit WIP and credit MOH.

Haverhill Products Just Completed Job Number 440