In a Job-Order Cost System, the Application of Manufacturing Overhead

question 55

Multiple Choice

In a job-order cost system, the application of manufacturing overhead usually would be recorded as a debit to

• A)Cost of Goods Sold.
• B)Work in Process Stock.
• C)Manufacturing Overhead.
• D)Finished Goods Stock.

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Definitions:

Catering Department

A division within a company or organization responsible for providing food services for events, meetings, or facilities.

Restaurant

A business establishment that prepares and serves meals, snacks, and beverages to customers.

Departmental Gross Profit

The difference between sales and the cost of goods sold for a specific department, highlighting its profitability.

Revenue

An amount earned by performing services for customers or selling goods to customers; it can be in the form of cash or accounts receivable. A subdivision of owner’s equity: As revenue increases, owner’s equity increases.