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.

Question

Tiana Cruz

Business

17 August, 12:57

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.

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Allyson Lang · Answer 1

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