EB10.

LO 5.5Overhead is assigned to the manufacturing department at the rate of $5 per machine hour. There were 3,000 machine hours used in the molding department. Prepare the journal entry to apply overhead to the manufacturing department.

Question

Luna Khan

Business

30 July, 09:05

EB10.

LO 5.5Overhead is assigned to the manufacturing department at the rate of $5 per machine hour. There were 3,000 machine hours used in the molding department. Prepare the journal entry to apply overhead to the manufacturing department.

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Answers (1)

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Mario Travis · Answer 1

Debit Credit

Work in process inventory $15,000

Manufacturing overhead clearing account $15,000

Explanation:

First determine the amount of applied overhead which can be calculated as follows

Applied overhead=Rate per machine hour*number of hours

Applied overhead=$5*3,000=$15,000

The journal entry for the applied overhead shall be made as follow

Debit Credit

Work in process inventory $15,000

Manufacturing overheads clearing account $15,000

EB10.LO 5.5Overhead is assigned to the manufacturing department at the rate of $5 per machine hour. There were 3,000 machine hours used in the molding department. Prepare the journal entry to apply overhead to the manufacturing department.

EB10.

LO 5.5Overhead is assigned to the manufacturing department at the rate of $5 per machine hour. There were 3,000 machine hours used in the molding department. Prepare the journal entry to apply overhead to the manufacturing department.