Ask Question
12 February, 16:35

The journal entry to record the allocation of factory overhead to work in process is: (A) debit Work in Process Inventory and credit Factory Overhead (B) debit Factory Overhead and credit Work in Process Inventory (C) debit Cash and credit Factory Overhead (D) debit Work in Process Inventory and credit Cash

+3
Answers (1)
  1. 12 February, 16:56
    0
    (A) debit Work in Process Inventory and credit Factory Overhead

    Explanation:

    On cost accounting, the debit is the destination of the cost.

    And the credit the origin, to record the allocation of factory overhead, the destination is the work in proces, and the origin, the reason of existence of the cost is the factory ovehead which, will be credited.

    Same idea applies when posting the materials used and the direct labor. A debit to work in process (destination) is made and then, a credit to raw materials inventory (origin) or labor payable (origin)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The journal entry to record the allocation of factory overhead to work in process is: (A) debit Work in Process Inventory and credit ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers