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In a normal costing system, the Manufacturing Overhead Control account:

A) is increased by allocated manufacturing overhead
B) is credited with amounts transferred to Work-in-Process
C) is decreased by allocated manufacturing overhead
D) is debited with actual overhead costs

User Chatina
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Final answer:

In a normal costing system, the Manufacturing Overhead Control account is debited with actual overhead costs, not allocated manufacturing overhead.

Step-by-step explanation:

In a normal costing system, the Manufacturing Overhead Control account is involved in the accounting of the manufacturing overhead costs that are incurred during the production process. When actual overhead costs are incurred, such as factory rent, utilities, or indirect materials and labor, these costs are added to the Manufacturing Overhead Control account. Therefore, the correct answer to the question is:

D) is debited with actual overhead costs.

As costs are incurred, they are debited to the Manufacturing Overhead Control account. This account is then credited when the overhead is allocated to Work-in-Process (WIP). This allocation is based on a predetermined overhead rate. The allocated overhead costs are not debited to this account; instead, they are debited to the Work-in-Process account, reflecting the costs assigned to the products being manufactured.

User Msbmsb
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