Answer:
True
Explanation:
The given entry is correct as it shows a debit to Work in Process Inventory, Baking Dept 24,500 and credit to Factory Overhead 24,500
The applied factory overhead account is closed to the actual factory overhead control account at the end of the accounting period by debiting the applied factory overhead and crediting factory overhead control account.
It is common practice to use an applied factory overhead account because it keeps applied costs and actual costs in separate accounts.Some companies do not use applied factory overhead account and post credit directly to factory overhead control account.
Work in Process Inventory, Baking Dept 24,500 Dr
Factory Overhead 24,500 Cr
This entry eliminates the transfer of applied expenses to actual expenses
