In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:
A) a credit to the Manufacturing Overhead account.
B) a credit to the Work in Process inventory account.
C) a debit to Cost of Goods Sold.
D) a debit to the Manufacturing Overhead account.

Question

Quizplus · Accepted Answer

In a job-order costing system, when overhead is applied to jobs, the Manufacturing Overhead account is credited to reduce it, reflecting the allocation of overhead costs to Work in Process.

In a Job-Order Costing System, the Journal Entry to Record