Question

Which of the following entries would record the application of overhead cost correctly? A. Manufacturing Overhead XXX Accounts Payable XXX B. Work in Process XXX Accounts Payable XXX C. Work in Process XXX Manufacturing Overhead XXX D. Manufacturing Overhead XXX Work in Process XXX

Answer 1

Answer:

c.- WIP debit

        Overhead Credit

Explanation:

This represent the charge of the cost into the work being done.

The Work in Progress in increasing because we are adding the cost of the overhead to the product, and the overhead is being credited so later on when the actual values are know we can adjust it for example:

overhead debit

    indirect materials credit

    indirect wages payable credit

    other payable credit