When manufacturing overhead is applied to production in a job order cost system,the accounting records would reflect an increase in which of the following accounts?
A) Work in Pprocess Inventory
B) Cost of Ggoods Ssold
C) Finished Ggoods Inventoryinventory
D) Raw Mmaterials inventory Inventory

Question

Quizplus · Accepted Answer

Applying manufacturing overhead to production increases the asset account Work in Process Inventory and decreases the temporary asset account Manufacturing Overhead.

When Manufacturing Overhead Is Applied to Production in a Job