During December, Moulding Corporation incurred $87,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $85,000.Required:Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, excluding direct materials and direct labor.

Work in Process

Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Journal Entries

Records in accounting that document financial transactions in the books of accounts.