In a Normal Job-Order Costing System,the Journal Entry to Record

question 98

Multiple Choice

In a normal job-order costing system,the journal entry to record the application of overhead cost to jobs includes which of the following?

• A) A credit to the Work in Process inventory account.
• B) A credit to the Manufacturing Overhead account.
• C) A debit to Cost of Goods Sold.
• D) A debit to the Manufacturing Overhead account.

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Definitions:

Wage Rate

The standard amount of compensation received by employees for services rendered per unit of time, often expressed as an hourly rate or annual salary.

Monopsonist

A market scenario characterized by the presence of a single buyer and multiple sellers, granting significant pricing power to the buyer.

Marginal Cost

The additional expense incurred from manufacturing an extra unit of a product or service.

Wage Rate

The amount of compensation an employee receives per unit of time or per task performed, often expressed per hour or piece.