Question

The manufacturing overhead account is debited when ______.

A) Raw Materials are Purchased
B) Products are Sold
C) Overhead is Applied
D) Expenses are Incurred

Answer 1

The manufacturing overhead account is debited when overhead is applied to the production of goods.

Step-by-step explanation:

The correct answer is C) Overhead is Applied.

The manufacturing overhead account is debited when overhead costs are applied to the production of goods. Manufacturing overhead costs include indirect materials, indirect labor, and other indirect manufacturing expenses that cannot be directly traced to a specific product.

For example, if a company applies $1,000 of manufacturing overhead to produce a batch of products, the manufacturing overhead account will be debited by $1,000 to reflect the allocation of these costs to the production process.