In which account is the actual amount of costs such as factory utilities and maintenance initially recorded?
A) Work in Process Inventory
B) Manufacturing Overhead
C) Raw Materials Inventory
D) Supplies Inventory

Question

Quizplus · Accepted Answer

The actual amount of costs such as factory utilities and maintenance is initially recorded in the Manufacturing Overhead account. This account includes all indirect costs incurred in the manufacturing process, such as rent, utilities, depreciation, and maintenance of the factory building and equipment. Once these costs are initially recorded in the Manufacturing Overhead account, they are allocated to specific products using a predetermined overhead rate.

In Which Account Is the Actual Amount of Costs Such