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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Tricky entry came in cbe exam
What entry is required for recording 12500 as absorbed overhead as their is under absorption of 500?
a.DR PRODUCTION OVERHEAD 12500
CR WORK IN PROGRESS 12500
b.DR PRODUCTION OVERHEAD 12500
CR CASH 12000
CR WORK IN PROGRESS 500
c.DR WORK IN PROGRESS 12500
CR PRODUCTION OVERHEAD 12500
d.DR WORK IN PROGRESS 12000
DR PRODUCTION OVERHEAD 500
CR CASH 12500
CAN SOMEBODY ANSWER ME AS I HAD FACE IT IN EXAM.
C should be correct because the debits and credits for the other 3 are definitely wrong.