Bates Company recognized $16,000 of estimated manufacturing overhead costs at the end of the month.As a result of this transaction the:
A) temporary account Manufacturing Overhead increases and the Work in Process account decreases.
B) temporary account Manufacturing Overhead decreases and the Work in Process account increases.
C) temporary account Manufacturing Overhead decreases and the Wages Expense account increases.
D) none of these.

Question

Quizplus · Accepted Answer

When estimated overhead is recognized (that is,applied or assigned to work in process inventory),the temporary account,Manufacturing Overhead,decreases and the Work in Process Inventory account increases.

Bates Company Recognized $16,000 of Estimated Manufacturing Overhead Costs at the End