Question

31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect labor Factory depreciation $16,000 4,000 8,500 12,800 37,000 Direct labor Using the above information, total factory A) $53,000. B) $25,300. e above information total factory overhead costs would be: C) $78,300. D) $16,800. E) $12,800 ne overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Work in Process Inventory. B) Cost of Goods Sold. C) Indirect Labor. D) Finished Goods Inventory. E) Jobs Overhead Expense. 33) When Factory Wages Payable costs for labor are allocated in a job cost accounting system: A) Factory Wages Payable is debited and Work in Process Inventory is credited. B) Work in Process Inventory is debited and Factory Overhead is credited. C) Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited. D) Work in Process Inventory and Factory Overhead are debited and Factory Wages Payable is! credited. E) Cost of Goods Manufactured is debited and Direct Labor is credited. l s is debited to the Raw Materials process.costing system, the purchase

Answer 1

31) B $25,300

Indirect materials	$   4,000.0
Indirect labor	$   8,500.0
Factory depreciation	$ 12,800.0
Total factory overhead costs	$ 25,300.0

32) A) Work in Process Inventory

Work in progress Inventory A/c Dr

Factory Overhead A/c Cr

33)D) Work-in-Process Inventory and Factory Overhead are debited and Factory Wages Payable are credited

Since labor costs are not paid, the allocated expenses create liability for factory wages (factory wages payables). Since labor costs would be added to inventory, the assets (inventory) are increased. Factory overhead costs are expenses, the expenses (factory wages) are increased.