Question

The journal entry to record the actual manufacturing overhead costs for indirect materials is:

A. Manufacturing Overhead Control xxx Materials Inventory xxx
B. Materials Inventory xxx Applied Manufacturing Overhead xxx
C. Manufacturing Overhead Control xxx Finished Goods Inventory xxx
D. Work-In-Process Inventory xxx Applied Manufacturing Overhead xxx

Answer 1

Answer: The correct answer is "A. Manufacturing Overhead Control xxx Materials Inventory xxx".

Explanation: The journal entry to record the actual manufacturing overhead costs for indirect materials is:

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Manufacturing Overhead Control xxx

Materials Inventory xxx

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The increase in indirect manufacturing costs due to indirect materials that become part of the cost of the product and the decrease in the inventory of indirect materials produced by the incorporation of the materials into the production process should be reflected.