Question

Selected accounts with amounts omitted are as follows: Work in Process Aug. 1 Balance 276,700 Aug. 31 Goods finished 126,300 31 Direct materials X 31 Direct labor 46,800 31 Factory overhead X Factory Overhead Aug. 1 – 31 Costs incurred 92,700 Aug. 1 Balance 12,600 31 Applied X If the balance of Work in Process on August 31 is $217,400, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Answer 1

$14,040

Step-by-step explanation:

Given that,

Work in Process Aug. 1 Balance = 276,700

Aug. 31

Goods finished = 126,300

Direct labor = 46,800

Factory Overhead Aug. 1 – 31 Costs incurred = 92,700

Aug. 1 Balance = 12,600

Balance of Work in Process on August 31 = $217,400

Factory overhead rate = 30%

Applied factory overhead:

= Direct labor cost × Factory overhead rate (% of direct labor )

= $46,800 × 30%

= $14,040