Marina Corp. applied overhead to jobs during the period as follows: Jobs finished and sold $ 46,000 Jobs started and in process 54,000 Jobs finished and unsold 100,000 The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account. The entry to dispose of this remaining factory overhead balance is:

A) No entry is needed.

B) Debit Factory Overhead $5,600; credit Cost of Goods Sold ss, 600.

C) Debit Factory Overhead $5,600; credit Work in Process Inventory $5,600.

D) Debit Work in Process Inventory $5,600; credit Factory Overhead $5,600.

E) Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600

Question

Shane Stanley

Business

25 January, 09:13

Marina Corp. applied overhead to jobs during the period as follows: Jobs finished and sold $ 46,000 Jobs started and in process 54,000 Jobs finished and unsold 100,000 The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account. The entry to dispose of this remaining factory overhead balance is:

A) No entry is needed.

B) Debit Factory Overhead $5,600; credit Cost of Goods Sold ss, 600.

C) Debit Factory Overhead $5,600; credit Work in Process Inventory $5,600.

D) Debit Work in Process Inventory $5,600; credit Factory Overhead $5,600.

E) Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600

+5

Answers (1)

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Luciana Lang · Answer 1

The journal entry is shown below:

Factory Overhead A/c Dr $5,600

To Cost of Goods Sold A/c Dr $5,600

(Being the over applied overhead balance is recorded)

For recording the remaining balance we debited the factory overhead account and credited the cost of goods sold account.

All other information which is given is not relevant. Hence, ignored it