Morewell,Inc

question 131

Multiple Choice

Morewell,Inc.used a predetermined overhead allocation rate to allocate $85,000 and $65,000 of indirect costs to Coloring Department and Mixing Department,respectively.The journal entry to record the allocation of overhead costs to the Coloring Department is ________.

• A) debit Manufacturing Overhead, $85,000; credit Work-in-Process Inventory-Mixing, $85,000
• B) debit Work-in-Process Inventory-Coloring, $85,000; credit Manufacturing Overhead, $85,000
• C) debit Work-in-Process Inventory-Coloring, $65,000; credit Manufacturing Overhead, $65,000
• D) debit Manufacturing Overhead, $65,000; credit Work-in-Process Inventory-Mixing, $65,000

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