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The cost of indirect labor will initially be charged to: Multiple Choice Wages E

ID: 2533681 • Letter: T

Question

The cost of indirect labor will initially be charged to:

Multiple Choice

Wages Expense.

Work in Process Inventory.

Cost of Goods Sold.

Manufacturing Overhead.

Beta Company determined that its manufacturing overhead for the current accounting period was overapplied by $1,400. It closed the amount to cost of goods sold. The recognition of this transaction will:

Multiple Choice

Decrease cost of goods sold.

None of these.

Have no impact on cost of goods sold.

Increase cost of goods sold.

O'Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During the current accounting period, O'Hare paid $2,100 to production employees who worked on job #132. The entry to record these wages would include an increase to which of the following accounts?

Multiple Choice

Finished goods inventory.

Wage expense.

Cost of goods sold.

Work in process inventory.

Explanation / Answer

Q1. Answer is Work in process Inventory. Q2. Answer is Decrease the cost of goods sold. Explanation: Journal entry will be : Manufacturing Overheads Account Dr. 1400         Cost of Goods sold 1400 Q3. Answer is Work in process Inventory

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