Which is the correct journal entry for allocation of manufacturing overhead to job, $195,000?
A. Work-in progress control. 195,000
Manufacturing overhead Allocated 195,000
B. None of them.
C. Manufacturing overhead Cost control. 195,000
Cash Control 195,000
D. Manufacturing Overhead Allocated 195,000
Work in progress 195,000
The correct answer is Option A - Dr. Work in progress control $195,000 & Cr. Manufacturing Overhead Allocated $195,000.In order to allocate the manufacturing overheads to the job, we debit the Work in progress account and credit the Manufacturing overhead allocated account .Work in progress reflects raw materials, labor and overheads that are allocated to a job in progress. At the time of allocation of the expenses, the manufacturing overhead account is credit. Hence, this is the correct answer.
Option B is incorrect as we have the answer at Option A.
Option C is incorrect as the cash account is not involved in the allocation of manufacturing overhead to job.
Option D is incorrect as this is the inverse entry for the actual entry and hence is incorrect.
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