Firlit Corporation incurred $69,000 of actual Manufacturing Overhead costs during October. During the same period, the Manufacturing Overhead applied to Work in Process was $70,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a .
A) debit to Work in Process of $70,000B) credit to Work in Process of $70,000C) debit to Manufacturing Overhead of $69,000D) credit to Manufacturing Overhead of $69,000

The correct answer is C

Explanation:

The journal entry for incurring the overhead cost is as:

Manufacturing Overhead A/cDr     $69,000

               Cash A/cCr     $69,000

As during the month of October, the corporation incurred the manufacturing cost worth $69,000, so in order to record this the manufacturing overhead account will be debited as the it is increasing and any increase is debited, whereas it is incurred against cash account, therefore, the cash is credited.

NOTE: The amount of $70,000 is applied to work in progress, so it will not be considered into this.

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