Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:
A) Debit Factory Overhead $248,000; credit Cash $248,000.
B) Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000.
C) Debit Goods in Process Inventory $248,000; credit Factory Overhead $248,000.
D) Debit Goods in Process Inventory $160,000; credit Factory Overhead $160,000.
E) Debit Goods in Process Inventory $160,000; credit Cash $160,000.

Question

Quizplus · Accepted Answer

The correct journal entry for recording the allocation of overhead to goods in process inventory is to debit Goods in Process Inventory and credit Factory Overhead for the amount of overhead allocated. This reflects the assignment of overhead costs to the production process.

Embark Produces Mulch for Landscaping Use