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In a job-order costing system, indirect labor cost is usually recorded as a debit to:
Multiple Choice
- Cost of Goods Sold.
- Manufacturing Overhead.
- Work in Process.
- Finished Goods.
On December 1, Mogro Corporation had $26,000 of raw materials on hand. During the month, the Corporation purchased an additional $60,000 of raw materials. During December, $62,000 of raw materials were requisitioned from the storeroom for use in production. The debits entered in the Raw Materials account during the month of December total:
Multiple Choice
- $86,000
- $26,000
- $60,000
- $62,000
Firlit Corporation incurred $69,000 of actual Manufacturing Overhead costs during October. During the same period, the Manufacturing Overhead applied to Work in Process was $70,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:
Multiple Choice
- credit to Manufacturing Overhead of $69,000
- debit to Manufacturing Overhead of $69,000
- credit to Work in Process of $70,000
- debit to Work in Process of $70,000
♦ Relevant knowledgeJob order costing is the process which assigns the production cost to a specific manufacturing task and is mostly utilized by businesses that provide specific customer jobs. Additionally, this method is utilized when each output differs from other. This means that different users can’t utilize the identical product.
1. Option B
Overhead control for manufacturing debts
2. Option C
$60,000
3. Option B