Question
The journal entry to record manufacturing overhead applied to Job #40 debits Blank______.
Multiple choice question.
Cost of goods sold and credits Manufacturing overhead
Manufacturing overhead and credits Work in process
Cost of goods sold and credits Work in process
Work in process and credits Manufacturing overhead
Multiple choice question.
Cost of goods sold and credits Manufacturing overhead
Manufacturing overhead and credits Work in process
Cost of goods sold and credits Work in process
Work in process and credits Manufacturing overhead
Answers
GPT-4o mini
The correct journal entry to record manufacturing overhead applied to Job #40 is:
**Work in process and credits Manufacturing overhead.**
This is because when manufacturing overhead is applied to a specific job, it increases the Work in Process inventory (as the costs are associated with jobs being worked on) and decreases the Manufacturing Overhead account (which is a temporary account used to accumulate overhead costs until they are applied to jobs).
**Work in process and credits Manufacturing overhead.**
This is because when manufacturing overhead is applied to a specific job, it increases the Work in Process inventory (as the costs are associated with jobs being worked on) and decreases the Manufacturing Overhead account (which is a temporary account used to accumulate overhead costs until they are applied to jobs).