Question

During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Answer 1

Answer:

debit to Manufacturing Overhead of $65,000

Explanation:

Manufacturing overhead cost are those that are shared to different processes that do not contribute directly to product being manufactured.

For example raw materials is a direct contributor to goods, while labour is a overhead cost that indirectly contributed to the good.

On the given scenario it is the actual amount incurred that will be debited to the books of the company.

So there will be a debit to Manufacturing Overhead of $65,000