Question

During April, Keenan Company incurred factory overhead costs as follows: indirect materials, $2,720; indirect labor, $4,320; utilities cost, $1,140; and factory depreciation, $4,320.

Journalize the entry to record the factory overhead incurred during April.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

We will close the expenses to factory overhead by passing one journal entry.

Factory overhead will be debited by ($2,720+$4,320+$1,140+$4,320) =$12,500

for wages expense we will credit wages payable

for indirect material we will credit materials

for utility expense we will credit utilities payable

for depreciation expense we will credit accumulated depreciation

		Debit	Credit
30 April	Factory overhead	$12,500
	Material		$2,720
	Wages Payable		$4,320
	Utilities payable		$1,140
	Accumulated depreciation		$4,320