CAF-5 · Chapter 6 · Question 6 of 10
When production overheads are absorbed into the cost of a specific job based on a predetermined rate, which account is credited?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Production Overhead Control Account
Explanation
To absorb overheads into a job, the entry transfers the cost out of the overhead pool and into production. The correct entry is Debit: Work in process (Job XYZ) and Credit: Production overhead control.
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