An Accountant Recently Debited Work-In-Process Inventory and Credited Manufacturing Overhead

Multiple Choice

An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead at a company that uses normal costing. The accountant was:

A) applying a predetermined overhead amount to production.
B) recognizing receipt of the factory utilities bill.
C) recording a year-end adjustment for an insignificant amount of underapplied overhead.
D) recognizing actual overhead incurred during the period.
E) recognizing the completion of production.