Question

The Brass Works is in the process of determining manufacturing overhead. Journalize events (0) - (d) to Factory Overhead, Administrative Expenses, Selling Expenses, or alocated between the three as appropriate. The insurance policy and electric bill were paid in cash at the time of acquisition. Next calculate the overhead application rate and apply overhead to Work in Process a. Brass Works purchases an insurance policy for 54.000. It is computed that of the value of the policy protects production, the balance protects the administrative offices, Brass Works charges Insurance initially to expense. If an amount box does not require an entry leave it blank. b. The electric bill is received showing an amount due of $1.200. This materis uted only by production as the office spaces meter. c. Payroll reports that the sales manager's salary for the period is $3.500 and that production supervisors wages for the period are $5.500 IF mount box does not require an entry leave it blank a

Answer 1

Journal Entries Date Account Title and Explaination Post. Ref. Debit (S) Credit (S) 3,200.00 800.00 Factory Overhead ($4000x80%) Administrative Expenses Cash |(To record Insurance policy purchased) $ 4,000.00 1,200.00 Factory Overhead Electricity Payable (To record Electricity bill received) 1,200.00 3,500.00 5,500.00 $ Selling Expenses Factory Overhead Payroll Payable (To record Payroll Expenses) S 9,000.00