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

Question

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] · Answer 1 · 2022-06-16T18:49:29+03:00

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.