COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cost of goods sold
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manufacturing overhead
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finished goods inventory
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work in process inventory
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Detailed explanation-1: -Direct labor is debited to the Work In Process inventory account and indirect labor is debited to the Manufacturing Overhead account.
Detailed explanation-2: -In process costing, factory overhead and direct labor costs are debited to the Work-in-Process Inventory account of each production department.
Detailed explanation-3: -Any indirect material or indirect labor costs are debited to the Manufacturing Overhead control account, along with any other actual manufacturing overhead costs incurred during the period. Manufacturing overhead is applied to Work In Process using the predetermined rate.
Detailed explanation-4: -The overhead account is debited for the actual overhead costs as incurred. The overhead account is credited for the overhead costs applied to production in the work-in-process account.
Detailed explanation-5: -Here are the types of costs that are included in manufacturing overhead: Indirect labor. Indirect materials. Utilities.