Final answer:
The journal entry to record the allocation of manufacturing overhead involves a debit to Work in Process inventory.
Step-by-step explanation:
The journal entry to record the allocation of manufacturing overhead involves a debit to Work in Process inventory.
When manufacturing overhead is allocated, it is added to the Work in Process inventory account. This is because manufacturing overhead represents the indirect costs incurred in the production process that cannot be directly attributed to a specific unit of production.
For example, if a company incurs $10,000 in manufacturing overhead costs, the journal entry to allocate these costs would be:
- Debit: Work in Process inventory $10,000
- Credit: Manufacturing Overhead $10,000