Final answer:
The correct journal entry to record fixed overhead costs allocated is C) Fixed Overhead Control Work-in-Process Control, where the Work-in-Process Control account is debited and the Fixed Overhead Control account is credited. Option C is correct.
Step-by-step explanation:
To record fixed overhead costs allocated in managerial accounting, the proper journal entry would increase (debit) the Work-in-Process (WIP) Control account and decrease (credit) the Fixed Overhead Control account.
This reflects the allocation of fixed overhead costs into the cost of production. Whenever overhead is assigned to the production process, it is added to the WIP account, which tracks ongoing production costs. Thus, the correct journal entry is represented by option C) Fixed Overhead Control Work-in-Process Control.
The journal entry would look like:
Debit: Work-in-Process Control
Credit: Fixed Overhead Control
This entry moves the allocated fixed overhead costs from the control account, which tracks the aggregate overhead costs, into the WIP account, which specifically tracks the costs associated with production in progress.