Question

Which of the following statements is false?

a.Indirect labor is assigned as a part of overhead.
b.The cost of a job includes direct materials, direct labor, and applied overhead.
c.Actual overhead costs always enter the Work-in-Process account.
d.The use of normal costing means that overhead is applied to each job using a predetermined rate.
e.None of these choices are correct.

Answer 1

Answer: Actual overhead costs always enter the Work-in-Process account.

Explanation:

The work-in-process account is an account where the value of goods yet to be completely produced are recorded while the overhead cost is simply a business running cost, that is cost on expenses the business makes to keep functioning.

Overhead cost is not recorded in work-in-process account, rather it is recorded as business expenses.