Refer to the T-account below: Entry (4) could represent which of the following except?
A) Indirect labor cost incurred.
B) Factory insurance cost.
C) Overhead cost applied to Work in Process.
D) Depreciation on factory equipment.

Question

Refer to the T-account below:  Entry (4) could represent which of the following except?
A) Indirect labor cost incurred. 
B) Factory insurance cost. 
C) Overhead cost applied to Work in Process. 
D) Depreciation on factory equipment.

Quizplus · Accepted Answer

Entry (4) shows a debit to Manufacturing Overhead, indicating the application of overhead cost to Work in Process. This entry cannot represent indirect labor cost incurred (which would be recorded as a debit to Factory Wages), factory insurance cost (which would be recorded as a debit to Insurance Expense), or depreciation on factory equipment (which would be recorded as a debit to Depreciation Expense).

Refer to the T-Account Below: Entry (4) Could Represent