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Question

When you have completed your exam and reviewed your answers. click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. Which of the following journal entries would be used to record application of manufacturing overhead to work in process in a process costing system with two processing departments, department A and department B?

Explanation / Answer

To Record Application of Overhead we debit Work in Process Account for respective departments and credit the Manufacturing overhead Account.

Hence the Journal entry for Application of Overhead shall be as under:

Account

Debit

Credit

Work in Process- Department A

XXX

Work in Process- Department B

XXX

Manufacturing Overhead

XXX

(Being Manufacturing overhead applied to Departments)

Account

Debit

Credit

Work in Process- Department A

XXX

Work in Process- Department B

XXX

Manufacturing Overhead

XXX

(Being Manufacturing overhead applied to Departments)

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