Michael Paints Used a Predetermined Overhead Allocation Rate to Allocate

Multiple Choice

Michael Paints used a predetermined overhead allocation rate to allocate $75,000 and $65,000 of indirect costs to Coloring Department and Mixing Department, respectively. The journal entry to record the allocation of overhead costs to the Coloring Department is:

A) debit Manufacturing Overhead, $75,000; credit Work-in-Process Inventory-Mixing, $75,000.
B) debit Work-in-Process Inventory-Coloring, $75,000; credit Manufacturing Overhead, $75,000.
C) debit Work-in-Process Inventory-Coloring, $65,000; credit Manufacturing Overhead, $65,000.
D) debit Manufacturing Overhead, $65,000; credit Work-in-Process Inventory-Mixing, $65,000.