Answered: Othello Manufacturing incurred OMR…

Othello Manufacturing incurred OMR 117,000 of direct labor and OMR 11,000 of indirect labor. The proper journal entry to record these events would include a debit to Work in Process for:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12EA: During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Othello Manufacturing incurred OMR 117,000 of direct labor and OMR 11,000 of indirect labor. The proper journal entry to record these events would include a debit to Work in Process for:

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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