O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.O'Hare Company counted the production supplies on hand at year-end and determined that the amount used was $125.The recognition of this event on the financial statements would include an increase to which of the following accounts?
A) Supply Expense
B) Work in Process Inventory
C) Manufacturing Overhead
D) Finished Goods Inventory

Question

Quizplus · Accepted Answer

The amount used for production supplies represents a manufacturing overhead cost which is applied to work in process inventory. Therefore, the recognition of this event would increase the Manufacturing Overhead account.

O'Hare Company Is a Manufacturing Firm That Uses a Job-Order