The Journal Entry to Record the Application of Overhead Costs

question 28

Multiple Choice

The journal entry to record the application of overhead costs to production 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 overhead costs are applied, debit Work in Process Inventory and credit Manufacturing OverheaD.

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Definitions:

Marine Animal

An animal that inhabits the ocean or other marine environments.

User Cost

The economic cost of using a resource today, which considers the lost opportunity of using it in the future.

Energy

The capacity to do work, manifested in physical forms such as heat, light, motion, and chemical energy, crucial to all aspects of life and industry.

Forests

Large areas covered chiefly with trees and undergrowth, considered in economic terms as a resource for timber, recreation, and ecological benefits.