Asked by Cathy Tuzon on May 03, 2024
Verified
Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
A) debit to Manufacturing Overhead of $92,000
B) debit to Work in Process of $90,000
C) credit to Manufacturing Overhead of $92,000
D) credit to Work in Process of $90,000
Manufacturing Overhead
All manufacturing costs other than direct materials and direct labor, including maintenance, utilities, and depreciation.
Work in Process
Work in process (WIP) refers to partially finished goods that are still in the production process, representing a component of inventory valuation in manufacturing and project management.
- Comprehend the method for allocating manufacturing overhead to jobs within a job-order costing framework.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
C
Explanation :
The journal entry to apply manufacturing overhead to Work in Process involves debiting Work in Process and crediting Manufacturing Overhead for the applied amount, which is $92,000 in this scenario.
Learning Objectives
- Comprehend the method for allocating manufacturing overhead to jobs within a job-order costing framework.
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