Question

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials Work in Process 3,850 5,950 8,250 8,050 Beg Bal 4,750 4,950 8,500 Beg Bal 21,950 Finished Goods Manufacturing overhead Beg Bal 1,950 21,950 2,550 3,250 2,950 20,150 8,050 Wages & Salaries Payable 20,150 Beg Bal Cost of Goods Sold 2,250 Beg Bal 11,500 20,150 The manufacturing overhead applied was

A. $8,050

B. $14,200

C. $3,250

D. $2,950

Please show me how you solved it, using step by step guide and visual calculations! Thanks so much!

Answer 1

	Manufacturing applied is $8,050
	no calculations required , you just need to
	read the T-Accounts
	refer to manufacturing overhead
	manufacturing overhead
		2,550		8,050
		3,250
		2,950
	the credit entry of $8,050 is the applied overhead
	the following entry is passed
	Accounting titles & explanations				Debit	Credit
	Work in process inventory				8,050
	manufacturing overhead					8,050
	thus the corresponding entry can be found in WIP inventory account
	on debit side