The Journal Entry to Record the Actual (Not Applied) Overhead

question 7

Multiple Choice

The journal entry to record the actual (not applied) overhead costs incurred includes:

• A) a debit to Manufacturing Overhead.
• B) a debit to Work in Process Inventory.
• C) a debit to Finished Goods Inventory.
• D) a debit to Cost of Goods SolD.
• When actual overhead costs are incurred, debit Manufacturing Overhead account. The credit would be to Cash, Payables, Prepaid Assets, or Accumulated Depreciation. (In contrast, when applying manufacturing overhead costs based on a predetermined rate, credit the Manufacturing Overhead account.)