Construction
Applying Manufacturing Overhead
Allocating indirect production costs to Work-in-Process (WIP) based on a predetermined rate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Work-in-Process (WIP) Inventory | Asset (+) | 8,500.00 | - |
| Manufacturing Overhead Applied | Clearing Account | - | 8,500.00 |
💡 Accountant's Note
This is a core CMA concept. Overhead is applied using a driver (like machine hours) to ensure products carry the full cost of production.
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