Question

multiple choice question
the journal entry to record manufacturing overhead applied to job #40 debits _______.
cost of goods sold and credits work in process
work in process and credits manufacturing overhead
manufacturing overhead and credits work in process
cost of goods sold and credits manufacturing overhead

Explanation:

When manufacturing overhead is applied to a job, the Work - in - Process account is debited to increase the cost of the job in progress, and the Manufacturing Overhead account is credited to reduce the balance of the applied overhead.

Answer:

B. Work in process and credits Manufacturing overhead