The balance in Branch Co.’s Work in Process inventory account was P15,000 on June 1 and P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch also issued P25,000 of direct materials to production. Total debits to the Manufacturing Overhead account are P28,000 during June while total credits are P30,000. Which of the following statements is true? a. Finished Goods was debited for P82,000 during the month. b. Finished Goods was credited for P83,000 during the month. c. Manufacturing Overhead was underapplied by P2,000 at the end of the month. d. Finished Goods was debited for P85,000 during the month
The balance in Branch Co.’s Work in Process inventory account was P15,000 on June 1 and P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch also issued P25,000 of direct materials to production. Total debits to the Manufacturing Overhead account are P28,000 during June while total credits are P30,000. Which of the following statements is true? a. Finished Goods was debited for P82,000 during the month. b. Finished Goods was credited for P83,000 during the month. c. Manufacturing Overhead was underapplied by P2,000 at the end of the month. d. Finished Goods was debited for P85,000 during the month
The balance in Branch Co.’s Work in Process inventory account was P15,000 on June 1 and P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch also issued P25,000 of direct materials to production. Total debits to the Manufacturing Overhead account are P28,000 during June while total credits are P30,000. Which of the following statements is true? a. Finished Goods was debited for P82,000 during the month. b. Finished Goods was credited for P83,000 during the month. c. Manufacturing Overhead was underapplied by P2,000 at the end of the month. d. Finished Goods was debited for P85,000 during the month
The balance in Branch Co.’s Work in Process inventory account was P15,000 on June 1 and P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch also issued P25,000 of direct materials to production. Total debits to the Manufacturing Overhead account are P28,000 during June while total credits are P30,000. Which of the following statements is true?
a. Finished Goods was debited for P82,000 during the month.
b. Finished Goods was credited for P83,000 during the month.
c. Manufacturing Overhead was underapplied by P2,000 at the end of the month.
d. Finished Goods was debited for P85,000 during the month.
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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