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Amiraneli [1.4K]
3 years ago
11

Argon Chemicals had a total overhead amount of $47,200 during the month of June. Of that total, 58% was related to the factory,

and 42% was related to the office building. On June 30, Argon should ________ the Manufacturing Overhead account for
A
credit; $27,376.
B
debit; $47,200.
You got it correct :
C
debit; $27,376.
D
credit; $47,200.
Business
1 answer:
andreyandreev [35.5K]3 years ago
6 0

Answer:

(C )  debit; $27,376.

Explanation:

The 58% portion related to factory expenses and  should be charged to Manufacturing Overhead (DR) as an indirect expense. This should be absorbed as part of production costs.

The Balance of 42% will be charged as general depreciation on office building.

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