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During March, Pendergraph Corporation incurred $75,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $77,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

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Answer:

Journal Entry is as follow;

                                                    Dr.          Cr.

Manufacturing overhead       $75,000

Work in process                                  $75,000

Explanation:

Actual overhead will be recorded to Manufacturing overhead account and credit to Work in process account. Eventually under or over applied overhead will be adjusted in the work in progress account.

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