In a job order costing system, when supplies are issued from inventory to production, the Overhead account is increased.

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In a job order costing system, when supplies are issued from inventory to production, the Overhead account is increased to reflect the indirect costs associated with the production process. These indirect costs may include expenses such as rent, utilities, and depreciation of manufacturing equipment. However, it is important to note that direct materials and direct labor costs are typically not included in the Overhead account, but rather are charged directly to the specific jobs they are associated with.

In a Job Order Costing System, When Supplies Are Issued