Question

During March, Pendergraph Corporation incurred $71,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $73,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a_________________.

a. credit to Manufacturing Overhead of $71,000
b. credt to Work in Process of $73,000
c. debit to Work in Process of $73,000
d. debit to Manufacturing Overhead of $71,000

Answer 1

Answer:

c. debit to Work in Process of $73,000

Explanation:

The journal entry to record the application of Manufacturing Overhead to Work in Process will be as follows:

Dr. Work in process Account                      $73,000

Cr. Manufacturing overhead Account        $73,000

Actual Manufacturing overhead costs will not be used for this transaction.  

So the correct option is c. debit to Work in Process of $73,000