Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 23,900 Oct. 31 Finished goods X 31 Direct materials 91,000 31 Direct labor 151,900 31 Factory overhead X Finished Goods Oct. 1 Balance 14,700 31 Goods finished 340,600 If the balance of Work in Process on October 31 is $215,100, what was the amount of factory overhead applied in October

Question

Elyse Keith

Business

6 February, 09:58

Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 23,900 Oct. 31 Finished goods X 31 Direct materials 91,000 31 Direct labor 151,900 31 Factory overhead X Finished Goods Oct. 1 Balance 14,700 31 Goods finished 340,600 If the balance of Work in Process on October 31 is $215,100, what was the amount of factory overhead applied in October

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Answers (1)

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Denise Contreras · Answer 1

the amount of factory overhead applied in October is $274,200

Explanation:

First calculate the amount transferred to Finished Goods Account from the Work in Process Account.

Finished Goods T - Account

Debit

Opening Balance $14,700

Transferred from Work In Process Account $325,900

Totals $340,600

Credit

Closing Balance $340,600

Totals $340,600

Prepare the Work in Process T - Account to determine the balance that is Overhead Applied.

Work in Process T - Account

Debits

Opening Balance $23,900

Direct materials $91,000

Direct labor $151,900

Overheads (balancing figure) $274,200

Totals $541,000

Credits

Closing Balance $215,100

Transfer to Finished Goods $325,900

Totals $541,000

Conclusion:

the amount of factory overhead applied in October is $274,200