During March, Pendergraph Corporation incurred $61,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $63,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

A) credit to Manufacturing Overhead of $63,000
B) debit to Work in Process of $61,000
C) credit to Work in Process of $61,000
D) debit to Manufacturing Overhead of $63,000

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Glenda Aponte · Accepted Answer

Final Answer : A, Explanation :  DThe correct answers are A) credit to Manufacturing Overhead of $63,000 and D) debit to Manufacturing Overhead of $63,000. When manufacturing overhead is applied to work in process, the journal entry includes a debit to Work in Process (reflecting the increase in costs due to overhead) and a credit to Manufacturing Overhead (reflecting the allocation of overhead costs to production). The amounts are based on the applied overhead, not the actual overhead incurred.

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