In a process cost system, the application of manufacturing overhead usually would be recorded as a debit to: Select one: a. Finished goods. b. Manufacturing overhead. c. Cost of goods sold. d. Work in process.
Answer: Option b) Manufacturing overhead
Explanation:
In a process cost system, the application of manufacturing overhead usually would be recorded as a debit side of Manufacturing overhead.
In a process cost actual overhead incurred in a manufacturing process so debited to the manufacturing overhead.
There is also applied overhead incurred it would be debited to work-in-process inventory and credited to Manufacturing overhead.
Thus, option b) is correct and remaining options are incorrect.
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