Which of the following transactions would result in a debit to the Manufacturing Overhead account?

• A. Direct labor costs incurred
• B. Indirect materials used in production
• C. Overapplied overhead closed to Cost of Goods Sold
• D. Applied overhead to Work in Process

Answer: (B)

Verified step by step guidance

1. Understand the concept of the Manufacturing Overhead account: This account is used to accumulate all indirect costs related to production, such as indirect materials, indirect labor, and other factory overhead expenses.
2. Review the nature of each transaction: Direct labor costs are not debited to Manufacturing Overhead because they are direct costs and are debited to Work in Process. Applied overhead to Work in Process is a credit to Manufacturing Overhead, not a debit. Overapplied overhead closed to Cost of Goods Sold involves adjusting the Cost of Goods Sold account, not debiting Manufacturing Overhead.
3. Focus on the transaction 'Indirect materials used in production': Indirect materials are part of manufacturing overhead. When these materials are used, the Manufacturing Overhead account is debited to reflect the increase in overhead costs.
4. Understand the journal entry for indirect materials: The journal entry would typically debit Manufacturing Overhead and credit Raw Materials Inventory to account for the usage of indirect materials.
5. Conclude that the correct transaction resulting in a debit to Manufacturing Overhead is 'Indirect materials used in production,' as it aligns with the purpose of the account to accumulate indirect production costs.