Answer:
The journal entry is shown below:
Explanation:
Factory overhead is the term which is defined as the cost or expense which take place during production procedure. And it does not involve the cost in relation to direct labor and direct material.
The journal entry to apply the overhead to these production departments is as follows:
Work in Progress Inventory - Assembly A/c..............Dr $112,500
Work in Progress Inventory - Finishing A/c................Dr $ 31,500
Factory Overhead A/c....................................................Cr $144,000
Being the entry for applying the overhead is recorded
Working Note:
Work in Progress Inventory - Assembly = $125,000 × 90%
Work in Progress Inventory - Assembly = $112,500
Work in Progress Inventory - Finishing A/c = $35,000 × 90%
Work in Progress Inventory - Finishing A/c = $31,500
