Question

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $96,000 and expected direct labor hours of 12,000 for the current fiscal year. If job number 117 incurs 1,690 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Answer 1

the work in process should be debited for $13,520 and factory overhead should be credited for $96,000

Step-by-step explanation:

The computation is shown below;

Work in process is

= $96,000 ÷ 12,000 × 1,690

= $13,520

So here the work in process should be debited for $13,520 and factory overhead should be credited for $96,000

Therefore the same would be considered and relevant

The same is fit to the given situation