Question

Journalizing the entry to record the application of factory overhead costs to jobs would include a credit to a.Work in Process b.Wages Payable c.Factory Overhead d.Cost of Goods Sold

Answer 1

Answer:

c. Factory Overhead

Explanation:

The journal entry to record the application of the factory overhead cost is shown below:

Work in process A/c Dr XXXXX

      To Factory overhead A/c XXXXX

(Being the factory overhead applied)

The applied factory overhead is computed after considering the predetermined overhead rate. The formula is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)