Manufacturing Overhead is a temporary account used to accumulate indirect production costs during the accounting period.

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Quizplus · Accepted Answer

Manufacturing Overhead is indeed a temporary account used to accumulate indirect production costs during the accounting period. It is also known as the Factory Overhead or the Indirect Manufacturing Cost account. These costs cannot be directly traced to specific products or units of production but are necessary in the manufacturing process, such as rent, utilities, taxes, and indirect labor. At the end of the period, Manufacturing Overhead is closed out to Cost of Goods Sold or allocated to specific products using a predetermined overhead rate.

Manufacturing Overhead Is a Temporary Account Used to Accumulate Indirect