In process costing,the journal entry to record factory overhead applied to units in a department would include a ________.
A) Debit to Factory Overhead
B) Debit to Work-in-Process Inventory-Department Name
C) Credit to Cost of Goods Sold
D) Credit to Finished Goods Inventory

Question

Quizplus · Accepted Answer

The journal entry to record factory overhead applied to units in a department would include a debit to Factory Overhead and a credit to Work-in-Process Inventory-Department Name, as it represents the allocation of indirect costs to the specific department's production. Cost of Goods Sold and Finished Goods Inventory accounts are used when the finished product is sold, not for the allocation of overhead costs.

In Process Costing,the Journal Entry to Record Factory Overhead Applied