Asked by Petergay Senior on Jul 12, 2024
Verified
When manufacturing overhead is applied to production, it is added to:
A) the Cost of Goods Sold account.
B) the Raw Materials account.
C) the Work in Process account.
D) the Finished Goods inventory account.
Manufacturing Overhead Applied
The amount of indirect production costs allocated to individual units of output, based on a predetermined overhead rate.
Work in Process Account
An account that tracks the costs associated with the production of goods that are not yet completed.
- Gain insight into how manufacturing overhead affects the pricing of products.
Verified Answer
PA
Phil Angelie NemenzoJul 19, 2024
Final Answer :
C
Explanation :
Manufacturing overhead is applied to production in order to allocate overhead costs to the products being produced. It is added to the Work in Process account, which represents the cost of the products that are in various stages of production. The other options (A, B and D) are not correct because manufacturing overhead is not directly related to the Cost of Goods Sold, Raw Materials or Finished Goods inventory accounts.
Learning Objectives
- Gain insight into how manufacturing overhead affects the pricing of products.