Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:a. debit to Manufacturing Overhead of $92,000 b. debit to Work in Process of $90,000 c. credit to Manufacturing Overhead of $92,000 d. credit to Work in Process of $90,000

c. credit to Manufacturing Overhead of $92,000

Explanation:

Applied Manufacturing overhead was $92,000

So, The journal entry to record this will be,

                                                Dr.          Cr.

Work in Process of            $92,000

Manufacturing Overhead                 $92,000

So, manufacturing overhead account is credited with the value of $92,000.

c. credit to Manufacturing Overhead of $92,000

Explanation:

a. debit to Manufacturing Overhead of $92,000

This entry is incorrect as overheads are expense and must be record as credit in journal entries.

b. debit to Work in Process of $90,000

The question requires journal entry to Work in Process which was $92,000. Therefore, the amount applied here is incorrect.

c. credit to Manufacturing Overhead of $92,000

This entry is correct as overheads are expense and must be record as credit in journal entries, as mentioned by crediting Manufacture Overheads.

d. credit to Work in Process of $90,000

The question requires journal entry to Work in Process which was $92,000. Therefore, the amount applied here is incorrect.

Hence, the entry mentioned in c. both in terms of application and amount is correct.

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