Asked by Sophony Henri on Jul 03, 2024
Verified
In both job and process costing, the journal entry to record predetermined overhead is.
A) debit work in process and credit raw materials inventory, salaries payable and manufacturing overhead.
B) debit work in process and credit manufacturing overhead applied.
C) debit manufacturing overhead and credit work in process and raw materials inventory.
D) debit manufacturing overhead and credit work in process inventory.
Job and Process Costing
A combined accounting approach that assigns costs to individual units or batches (job costing) and tracks costs across processes for continuous production (process costing).
Predetermined Overhead
An estimate of the manufacturing overhead cost that will be applied to products based on a planned activity level, used for budgetary and costing purposes.
Manufacturing Overhead
The indirect costs associated with manufacturing, including costs related to the operation of the factory, such as utilities and salaries for supervisors.
- Gain insight into the procedures for recording and distributing costs of materials, labor, and overhead within process costing.
Verified Answer
Learning Objectives
- Gain insight into the procedures for recording and distributing costs of materials, labor, and overhead within process costing.
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