Question

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to Jobs Overhead Expense Cost of Goods Sold Finished Goods Inventory Indirect Labor Work in Process Inventory

Answer 1

Answer:

Work in progress inventory A/c  

Explanation:

The journal entry to record the overhead cost applied is shown below:

Work in progress inventory A/c Dr XXXXX

           To Factory overhead A/c  XXXXX

(Being applied overhead is recorded)

For recording the applied overhead cost, we debited the work in progress inventory and credited the factory overhead account so that the correct posting can be done with the correct item