In process costing,which of the following is recorded by debiting the Manufacturing Overhead account?
A) transfer of units from one process to the next
B) direct labor costs incurred
C) depreciation on factory machinery
D) electricity used in the sales office

Question

Quizplus · Accepted Answer

Manufacturing overhead represents indirect costs of production, such as depreciation on factory machinery. Therefore, any costs related to manufacturing overhead should be debited to this account. Direct labor costs (B) would be recorded in the Wages Payable account, transfer of units (A) would be recorded in the Work in Process account, and electricity used in the sales office (D) would be recorded either in the Utilities Expense or Administrative Expense account, depending on the nature of the expense.

In Process Costing,which of the Following Is Recorded by Debiting