Overhead application is recorded with a
A) credit to Work in Process Inventory.
B) credit to Manufacturing Overhead.
C) debit to Manufacturing Overhead.
D) credit to job cost sheets.

Question

Quizplus · Accepted Answer

Overhead application involves allocating the manufacturing overhead costs to the products being produced. This is done by debiting the Work in Process Inventory account and crediting the Manufacturing Overhead account, reflecting the transfer of overhead costs from an accumulated cost account to the products being manufactured.

Overhead Application Is Recorded with a