Question

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: Work in Process July1 Balance 60,200 Direct materials 147,000 Direct labor 120,000 Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200. a. Prepare the journal entries to record (1) the application of factory overhead to production during July and (2) the jobs completed during July.

Answer 1

Answer:

Journal entries

Explanation:

The journal entries are as follows

1)  Work in Process  Dr $72,000

            To factory overhead $72,000

(Being the application of factory overhead is recorded)

It is computed below:

= $120,000 × 60%

= $72,000

(2)  Finished Goods  $301,200

               To Work in Process  $301,200

(Being the job completed during July is recorded)

Only these two above entries are passed