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11 March, 11:06

What account is credited when overhead cost is applied to Work in Process? Would you expect the amount of overhead applied for a period to equal the actual overhead costs of the period? Why or why not?

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  1. 11 March, 11:32
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    The journal entry is as follows:

    Work in process Inventory A/c Dr

    To Manufacturing overhead A/c

    (Being the overhead cost is applied to Work in Process account)

    The overhead applied is not equal to the actual overhead because of the predetermined overhead rate. As the predetermined overhead rate is used to calculate the applied overhead
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