In a job-order costing system, the entry to requisition $1,000 of factory supplies from Raw- Materials inventory would be recorded with a:
A) Debit to Work- in process- inventory and credit to Raw-Materials Inventory
B) Debit to Manufacturing Overhead and credit to Cash
C) Debit to Manufacturing Overhead and credit to Raw- Materials inventory
D) Debit to raw materials inventory and credit to Work- in-Process

Question

Quizplus · Accepted Answer

The correct entry for requisitioning factory supplies from Raw-Materials inventory in a job-order costing system is to debit Manufacturing Overhead and credit Raw-Materials Inventory. This reflects the use of supplies in the production process, which are considered indirect costs and thus charged to Manufacturing Overhead.

In a Job-Order Costing System, the Entry to Requisition $1,000