During February, Irving Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $60,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Question

Quizplus · Accepted Answer

The journal entry to record the application of Manufacturing Overhead to Work in Process would include a credit to Manufacturing Overhead account for the amount of overhead applied, which in this case is $60,000. Therefore, the correct choice is C, credit to Manufacturing Overhead of $60,000. Neither A nor B is correct because the total actual Manufacturing Overhead costs incurred during the period are different from the amount applied to Work in Process. Option D is incorrect because it suggests recording the actual Manufacturing Overhead costs, rather than the applied amount.

During February, Irving Corporation Incurred $65,000 of Actual Manufacturing Overhead