When manufacturing overhead costs are assigned to production in a process cost system they are debited to
A) the Finished Goods Inventory account.
B) Cost of Goods Sold.
C) a Manufacturing Overhead account.
D) a Work in Process account.

Question

Quizplus · Accepted Answer

In a process cost system, manufacturing overhead costs are assigned to production by debiting them to a Work in Process account. This account represents the total cost of production that is still in progress and has not yet been completed. As the production process continues, additional direct materials, direct labor, and manufacturing overhead costs are added to the Work in Process account until the product is completed and transferred to Finished Goods Inventory.

When Manufacturing Overhead Costs Are Assigned to Production in a Process