Question & Answer: The appropriate journal entry to record the application of factory utilities cost in a job…..

The appropriate journal entry to record the application of factory utilities cost in a job costing system involves a debit to Work in Process and a credit to:

Select one:

a. Utilities expense

b. Factory overhead

c. Finished goods inventory

d. Raw materials inventory

Expert Answer

 

option b) Factory overhead

When the overhead is applied to job then work in process is debited and factory overhead is credited.

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