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 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 for the applied amount of $81,000. This journal entry does not involve the actual Manufacturing Overhead costs incurred but rather the allocation of the overhead to the Work in Process account. Therefore, choices A and D can be eliminated. Additionally, a debit to Manufacturing Overhead for the applied amount would not be correct as it would increase the expense account rather than allocate it to Work in Process.

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