O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare paid $700 for equipment rental and other indirect costs.The recognition of this event would:

Question

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When a company pays for equipment rental and other indirect costs,the asset account Cash decreases and the temporary asset account Manufacturing Overhead increases.It is an asset exchange transaction and,as such,has no impact on total assets.

O'Hare Company,is a Manufacturing Firm That Uses a Job-Order Cost