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29 January, 15:52

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to:

a. Cost of Goods Manufactured.

b. Finished Goods Inventory.

c. Work in Process Inventory.

d. Raw Materials Inventory.

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  1. 29 January, 15:56
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    The correct answer is option C.

    Work in Process Inventory

    Explanation:

    Manufacturing overheads are the costs other than the direct materials and the direct labour which are related to the manufacturing process of the company. It is taken into account to find the exact cost of manufacturing.

    Manufacturing Overhead are direct labour and direct material these cost will be transferred to work in process inventory.
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