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

To recognize the Actual costs linked to production

Debit Factory overheads $32,000

Credit Accounts payable 32,000

Answer is A