In what account does allocated overhead go into?

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Allocated overhead is vital in the accounting process as it helps accurately track the costs associated with production. When overhead costs are allocated, they are initially recorded in the Work In Progress account. This account captures all costs that are incurred for products that are not yet completed.

As production progresses, allocated overhead must remain within this account until the goods are finished. Once the products are completed, the full cost, including the allocated overhead, is then transferred to the Finished Goods account. Eventually, when the goods are sold, their costs, including allocated overhead, move to the Cost of Goods Sold account.

Thus, the Work In Progress account is the correct answer because it is where all manufacturing costs, including allocated overhead, accumulate during the production process before moving into the Finished Goods account upon completion.