COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raw Materials Inventory
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Finished Goods Inventory
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Work in Process Inventory
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Cost of Goods Sold.
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Detailed explanation-1: -The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: Multiple Choice Jobs Overhead Expense.
Detailed explanation-2: -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-3: -In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include: a credit to the Manufacturing Overhead account.
Detailed explanation-4: -Answer and Explanation: What account is credited when overhead cost is applied to Work in Process? The credited account is the manufacturing overhead control account or manufacturing overhead account.
Detailed explanation-5: -Answer and Explanation: To record the application of manufacturing overhead to work in process, a credit must be made to manufacturing overhead to reduce the balance in the account and move it into production with a debit to work in process. The work in process account is increased with a debit.