Question

15. Journal entry for absorption of production overheads in non-integrated accounts is
(a) Production Overhead Account
Dr.
Cost Ledger Control Account
Cr.
(b) Work-in-Progress Account
Dr.
Production Overhead Control Account Cr.
(c) Overhead Adjustment Account
Dr.
Production Overhead Account
Cr.
​

Answer 1

Answer:

option C

Explanation:

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Answer 2

We are required to provide the journal entry for absorption of production overheads in the non-integrated account. The correct option for the journal entry is A.

• Non-integrated accounts method is a method of accounting under individual ledgers that are maintained for cost and financial accounts.
• Under such a method the cost accounts limit themselves to registering only those transactions which relate to the product or service being delivered.
• Therefore in this situation, the production overheads account is debited and the cost ledger control account is credited.
• Therefore, the Journal entry is:

                       Production overheads account Dr

                         To, Cost ledger control account Cr

• Therefore, the first option of the journal entry given is the correct answer.

PROJECT CODE: #SPJ3