WHICH of the following is the correct journal entry as would appear in the cost books when overhead expenses incurred - 500 (Production 250and…

CA Intermediate · Cost and Management Accounting · RTP · September 2025
WHICH of the following is the correct journal entry as would appear in the cost books when overhead expenses incurred - 500 (Production 250and Administrative - 250)?
(A) Production Overhead Control A/c Dr.250 Administrative Overhead Control A/c Dr.250 To Cost Ledger Control A/c - 500
(B) Production Overhead Control A/c Dr.250 Administrative Overhead Control A/c Dr.250 To Overhead Expenses A/c - 500
(C) Cost Ledger Control A/c Dr.500 To Production Overhead Control A/c - 250 To Administrative Overhead Control A/c - 250
(D) Overhead Expenses A/c Dr.500 To Production Overhead Control A/c - 250 To Administrative Overhead Control A/c - 250

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Production Overhead Control A/c Dr.250 Administrative Overhead Control A/c Dr.250 To Cost Ledger Control A/c - 500

Topics: Overheads - Absorption Costing Method

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