Manufacturing

Factory Utility Accrual (Electricity/Water)

Recording the actual cost of running the machines for the month.

Account NameTypeDebit ($)Credit ($)
Manufacturing Overhead (Control)Expense (+)2,500.00-
Utilities PayableLiability (+)-2,500.00

💡 Accountant's Note

Factory utilities are a component of actual overhead. They are compared against 'Applied Overhead' at month-end.

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