Flying High Manufacturing produces frisbees using a three-step process that includes molding, coloring and finishing. Which of the following accounts is debited for Manufacturing Overhead?
A)WIP Inventory-Molding
B)WIP Inventory-Finishing
C)WIP Inventory-Coloring
D)All of the above

Question

Quizplus · Accepted Answer

Manufacturing Overhead includes costs associated with the production process that cannot be directly traced to a specific job. These costs include indirect materials, indirect labor, and other factory-related expenses such as rent, depreciation, utilities, and insurance. Since these costs are incurred throughout the entire production process, they are debited to the WIP Inventory for each step of the process - Molding, Coloring, and Finishing. Therefore, all of the above options (A,B,C) would be debited for Manufacturing Overhead.

Flying High Manufacturing Produces Frisbees Using a Three-Step Process That