Question

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $32,000. The entry to record the actual factory overhead costs incurred is

a.Factory Overhead                  32,000
    Accounts Payable                                     32,000

b.Accounts Payable                  25,000
    Factory Overhead                                     25,000

c.Work in Process                     25,000
    Wages Payable                                         25,000

d.Factory Overhead                   25,000
    Wages Payable                                         25,000

Answer 1

Answer : D) Debit factory Overheads : $25,000 , Credit Wages Payable : $25,000

To record the actual factory overheads, Enter the factory overheads to the debit with Actual cost incurres , Credit to the Wages Payable for the amount of Factory Overheads.