When manufacturing overhead costs are incurred, the amounts are recorded as a credit to Manufacturing overhead.

Name: When manufacturing overhead costs are incurred, the amounts are recorded as a credit to Manufacturing overhead.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are recorded as a debit to the manufacturing overhead account. The credit side of the journal entry would be to either accounts payable, cash, or accrual accounts depending on the nature of the expense.

When Manufacturing Overhead Costs Are Incurred, the Amounts Are Recorded