During August, Sherill Corporation incurred $78,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $81,000.
-The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Question

Quizplus · Accepted Answer

When recording actual manufacturing overhead costs, we debit Manufacturing Overhead. Therefore, the correct option is A. Option B is incorrect because we credit Work in Process when applying Manufacturing Overhead, not when recording actual costs. Option C is incorrect because we credit Manufacturing Overhead when applying Manufacturing Overhead, not when recording actual costs. Option D is incorrect because we debit Work in Process when applying Manufacturing Overhead, not when recording actual costs.

During August, Sherill Corporation Incurred $78,000 of Actual Manufacturing Overhead