X Company recorded the payment for utilities used by the manufacturing facility by crediting Cash and debiting

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X Company recorded the payment for utilities used by the manufacturing facility by crediting Cash and debiting Manufacturing Overhead. Why was the debit made to Manufacturing Overhead instead of Work in Process Inventory?

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Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

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Question Posted: Dec 07, 2011 06:10 AM

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X Company recorded the payment for utilities used by the manufacturing facility by crediting Cash and debiting

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The cost of utilities on the manufacturing facility is an indirect overhead cost Since thi...View the full answer

Fundamental Managerial Accounting Concepts

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