QUESTION IMAGE
Question
select all that apply
a journal entry that debits manufacturing overhead and credits accounts payable could be made to record ______ (more than one answer may be correct.)
□ rent expense on factory equipment
□ the purchase of direct materials
□ rent on the administrative office
□ factory utilities expense
Manufacturing overhead includes indirect costs related to production. Rent expense on factory equipment and factory utilities expense are indirect production - related costs. Accounts payable is used when the expense is incurred but not yet paid. Purchase of direct materials is debited to the raw - materials inventory account, not manufacturing overhead. Rent on the administrative office is a period cost and not part of manufacturing overhead.
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- rent expense on factory equipment
- factory utilities expense