The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

A) Jobs Overhead Expense.
B) Cost of Goods Sold.
C) Finished Goods Inventory.
D) Indirect Labor.
E) Work in Process Inventory.

Question

Madisen Ellingson · Accepted Answer

Final Answer : E, Explanation :  The overhead cost applied to a job is added to the Work in Process Inventory account using a debit, as it is not yet a finished product. The credit is made to the Factory Overhead account. Thus, the correct option is E, Work in Process Inventory.

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

A) Jobs Overhead Expense.
B) Cost of Goods Sold.
C) Finished Goods Inventory.
D) Indirect Labor.
E) Work in Process Inventory.

Definitions

Learning Objectives

Learning Objectives

Related questions

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:A) Jobs Overhead Expense.B) Cost of Goods Sold.C) Finished Goods Inventory.D) Indirect Labor.E) Work in Process Inventory.

Definitions

Learning Objectives

Learning Objectives

Related questions

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

A) Jobs Overhead Expense.
B) Cost of Goods Sold.
C) Finished Goods Inventory.
D) Indirect Labor.
E) Work in Process Inventory.