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:

Demand

The desire and ability of purchasers to buy goods and services at different prices.

HRIS

Human Resource Information System, a software or online solution used for data entry, data tracking, and the data information needs of an organization's human resources (HR) management.

Organizational Decision Makers

Individuals or groups within an organization who have the authority to make important decisions affecting the organization's direction or operation.

Internal Supply Estimates

Projections or assessments of the availability of resources, personnel, or capabilities within an organization to meet its current or future needs.