In a Process Costing System,when Manufacturing Overhead Costs Are Applied

question 85

Multiple Choice

In a process costing system,when manufacturing overhead costs are applied to the cost of production,they are debited to:

• A)the Finished Goods Inventory account.
• B)the Cost of Goods Sold account.
• C)the Work in Process Inventory account.
• D)the Manufacturing Overhead account.
• E)the Raw Materials Inventory account.

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Definitions:

Sources of Cash

Various origins from which a company or individual may receive cash, such as operations, financing activities, and investing activities.

Cash and Accounts Receivable

Liquid assets comprising of cash available and money owed by customers to a company for goods or services provided.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases or services received.

Inventory

The raw materials, work-in-process products, and finished goods considered part of a business's assets that are ready or will be ready for sale.