Coat-All Paint Company Used a Predetermined Overhead Allocation Rate to Allocate

question 12

Multiple Choice

Coat-All Paint Company used a predetermined overhead allocation rate to allocate $80,000 and $50,000 of indirect costs to the Coloring Department and the Mixing Department,respectively.The journal entry to record the allocation of overhead costs to the Coloring Department is ________.Process costing is used.

• A) debit Manufacturing Overhead, $80,000; credit Work-in-Process Inventory-Mixing, $80,000
• B) debit Work-in-Process Inventory-Coloring, $80,000; credit Manufacturing Overhead, $80,000
• C) debit Work-in-Process Inventory-Coloring, $50,000; credit Manufacturing Overhead, $50,000
• D) debit Manufacturing Overhead, $50,000; credit Work-in-Process Inventory-Mixing, $50,000

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