When manufacturing overhead is applied to production, it is added to:

A) the Cost of Goods Sold account.
B) the Raw Materials account.
C) the Work in Process account.
D) the Finished Goods inventory account.

Question

dennis palicte · Accepted Answer

Final Answer : C, Explanation :  Manufacturing overhead is indirect cost which includes expenses like rent, utilities, depreciation, and indirect labor. These costs cannot be directly traced to individual units of production, but are necessary for the manufacturing process. When applied to production, manufacturing overhead is added to the Work in Process account, which represents the cost of goods that are in the process of being manufactured. Adding manufacturing overhead to the Work in Process account helps to accurately track the total cost of production for each unit being manufactured.

When manufacturing overhead is applied to production, it is added to:

A) the Cost of Goods Sold account.
B) the Raw Materials account.
C) the Work in Process account.
D) the Finished Goods inventory account.

Definitions

Learning Objectives

Learning Objectives

Related questions

When manufacturing overhead is applied to production, it is added to:A) the Cost of Goods Sold account.B) the Raw Materials account.C) the Work in Process account.D) the Finished Goods inventory account.

Definitions

Learning Objectives

Learning Objectives

Related questions

When manufacturing overhead is applied to production, it is added to:

A) the Cost of Goods Sold account.
B) the Raw Materials account.
C) the Work in Process account.
D) the Finished Goods inventory account.