In a job order cost system a decrease to Manufacturing Overhead will be accompanied by an increase to
A)Cost of Goods Manufactured.
B)Finished Goods Inventory.
C)Work in Process Inventory.
D)Raw Materials Inventory.

Question

Quizplus · Accepted Answer

Manufacturing Overhead is applied to Work in Process Inventory as part of the cost of production. Therefore, a decrease in Manufacturing Overhead will result in a decrease in the cost of Work in Process Inventory.

In a Job Order Cost System a Decrease to Manufacturing