Question

Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Answer 1

C. credit to Manufacturing Overhead of $92,000

Step-by-step explanation:

The journal entry for the application of Manufacturing to Work in Process amounting to $92,000 would be as follows:

Dr. ($) Cr. ($)

Work in Process 92,000

Manufacturing Overhead 92,000

The other options are incorrect either due to wrong particular used or due to incorrect amount such as in option (b) where the Debit to Work in Process is correct but the amount $90,000 is wrong. Hence, the option (c) Credit to Manufacturing Overhead of $92,000 is the correct answer.