Question

The journal entry to record allocation of manufacturing overhead to a particular job includes a​ ________.
A. debit to the WorkminusinminusProcess Inventory account and credit to the Manufacturing Overhead account
B. debit to the WorkminusinminusProcess Inventory account and credit to the Cash account
C. debit to the Finished Goods Inventory account and credit to the Manufacturing Overhead account
D. debit to the Manufacturing Overhead account and credit to the Finished Goods Inventory account

Answer 1

Answer:B. A debit to the workminusinminus process inventory account and credit to manufacturing overheads account.

Explanation:

Overhead are expenses that are not directly incurred by any particular products manufacturing process e.g factory rent, once it's incurred they are debited to the manufacturing overhead expenses account.

After deciding the amount of overhead to be transferred to each product produced, manufacturing overhead expenses is credited and products account debited.