Final Answer:
When manufacturing overhead is applied to a job, a credit is made to the Work in Process account. Option A is answer.
Step-by-step explanation:
Manufacturing overhead refers to the indirect costs incurred in the manufacturing process. These costs cannot be directly traced to individual jobs and are instead allocated to all jobs based on a predetermined overhead rate.
When manufacturing overhead is applied to a job, it is credited to the Work in Process account. This is because the overhead costs are considered to be part of the cost of producing the job and are therefore added to the work in process inventory.
The other options are incorrect because:
Finished Goods account: The Finished Goods account is used to track the cost of completed goods that are ready for sale. Manufacturing overhead is not associated with finished goods, but rather with goods that are still in the process of being produced.
Raw Materials account: The Raw Materials account is used to track the cost of raw materials that are used in the manufacturing process. Manufacturing overhead is not a direct cost of raw materials.
Cost of Goods Sold account: The Cost of Goods Sold account is used to track the cost of goods that have been sold to customers. Manufacturing overhead is not a cost that is incurred at the time of sale.
Option A is answer.