Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance $275,000 31 Direct materials X 31 Direct labor 450,000 31 Factory Overhead X Aug 31 Goods finished $1,030,000 Factory Overhead Aug 1-31 Cost incurred $145,000 Aug 1 Balance $15,000 31 Applied X If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

a. $120,000

b. $135,000

c. $70,000

d. $10,000

Question

Lilliana Bradshaw

Business

12 June, 17:42

Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance $275,000 31 Direct materials X 31 Direct labor 450,000 31 Factory Overhead X Aug 31 Goods finished $1,030,000 Factory Overhead Aug 1-31 Cost incurred $145,000 Aug 1 Balance $15,000 31 Applied X If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

a. $120,000

b. $135,000

c. $70,000

d. $10,000

+3

Answers (1)

Know the Answer?

Yadira Stafford · Answer 1

b. $135,000

Explanation:

amount debited to WIP = direct labor cost*overhead rate

= $450,000*30%

= $135,000

Therefore, at $135,000 was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs.