In both job and process costing, the journal entry to record predetermined overhead is.
A) debit work in process and credit raw materials inventory, salaries payable and manufacturing overhead.
B) debit work in process and credit manufacturing overhead applied.
C) debit manufacturing overhead and credit work in process and raw materials inventory.
D) debit manufacturing overhead and credit work in process inventory.

Question

Quizplus · Accepted Answer

In both job and process costing, predetermined overhead is applied to work in process based on a predetermined overhead rate. The journal entry to record this involves debiting work in process for the amount of overhead applied and crediting manufacturing overhead applied for the same amount. Therefore, the correct answer is B. Choices A, C, and D are incorrect because they do not accurately reflect the proper journal entry for recording predetermined overhead in job and process costing.

In Both Job and Process Costing, the Journal Entry to Record