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Which of the following items is debited to the Work-in-Process account?
A.
completed goods transferred out of the plant
B.
accounts receivable
C.
accumulated depreciation on fixed assets
D.
allocated manufacturing overhead
Expert Answer
Solution: D ( Allocated Manufacturing Overhead)
Reason: Allocating Manufacturing overhead simply means allocating the manufacturing overhead cost to a particular product, process and operation etc. The process of allocating or assigning the manufacturing overheads causes the work in process account to increase with a debit and vice versa.
