Question

how to get utilitis expense?

Answer 1

UTILITIS EXPENSES:- The cost of usage of utilities such as lighting, water, and heat. These expenses are included on all financial statements.

-->> The utilities expense incurred by a company's manufacturing operations is considered part of its factory overhead.

-->> Because of double-entry accounting and the accrual-basis of accounting, the cost of utilities will involve both an expense and a liability.

::- HOW TO CALCULATE :-

-> the company using the utilities will have to estimate

(1) the amounts used during an accounting period, and

(2) the amounts owed at the end of each accounting period. The amounts are entered into the accounting records through an accrual-type adjusting entry.