Question

Almo Company operates two factories: Plant M applies factory overhead to jobs on the basis of machine hours.

	Plant M	Plant D
Pre-determined factory overhead rate	$10 per machine hour	$4 per direct labor hour
Actual factory overhead costs for current month	$152,000	$93,000
Actual machine hours for current month	16,000	20,000

The entry to apply factory overhead to production for Plant M is

Group of answer choices

debit Work in process inventory and credit Factory overhead for $160,000

debit Work in process inventory and credit Factory overhead for $152,000

debit Factory overhead and credit Work in process inventory for $160,000

debit Factory overhead and credit Work in process inventory for $152,000

The Engine Shop applies factory overhead based on machine hours. Entries were made in the current month to record:

Actual factory overhead for the current month	$20,000
Applied factory overhead for the current month	24,000

The balance in the Factory overhead account after recording these entries is

Group of answer choices

$4,000 credit

$4,000 debit

$44,000 credit

$44,000 debit

During the month, Campbell Company worked on six jobs:

Job 200	$1,400
Job 201	$1,000
Job 202	$ 900
Job 203	$1,100
Job 204	$ 400
Job 205	$ 800

Jobs 200, 201, 202, and 203 were completed. Jobs 204 and 205 were not. Jobs 200 and 201 were sold to customers for twice their cost. At the end of the month, what is the remaining ending balance in Finished Goods?

Group of answer choices

$2,000

$4,400

$1,200

$3,200

Answer 1

The entry to apply factory overhead to production for Plant M is Answer: debit Work in process inventory and credit Factory overhead for $160,000 (16000*10)

The balance in the Factory Overhead account after recording these entries is Answer: $4,000 credit Debit Actual OH 20,000 Credit Applied OH 24,000 Credit Balance 2,000

At the end of the month, what is the remaining ending balance in Finished Goods? Answer: $2,000 = Job 202 + Job 203 = 900 + 1,100