During March, Pendergraph Corporation incurred $60,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $62,000.The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

A) credit to Manufacturing Overhead of $60,000
B) credit to Work in Process of $62,000
C) debit to Work in Process of $62,000
D) debit to Manufacturing Overhead of $60,000

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Rahma Mubarak · Accepted Answer

Final Answer : D, Explanation :  The actual Manufacturing Overhead incurred is recorded by debiting Manufacturing Overhead, a control account, and crediting various accounts such as Utilities, Depreciation, Insurance, etc. Therefore, the journal entry to record the incurred actual Manufacturing Overhead costs would include a debit to Manufacturing Overhead for $60,000, not a credit.

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