COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase Work in Process Inventory.
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increase Finished Goods Inventory.
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increase Manufacturing Overhead.
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decrease Raw Materials Inventory.
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Detailed explanation-1: -Answer and Explanation: The statement is FALSE. The purchase of raw materials should be recorded as a debit to the Raw Materials inventory account in a job order cost system. The raw materials account increases when raw materials are purchased and decrease when materials are issued to the manufacturing process.
Detailed explanation-2: -Answer: d. The construction of a new campus building. In a job order costing, the costs are applied in each of the job.
Detailed explanation-3: -When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited. Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system. When direct materials are received on the production floor, they are recorded on the job cost record.