Minstrel Manufacturing uses a job order costing system.During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
-The journal entry to record the application of factory overhead to production is:
A)Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000.
B)Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000.
C)Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000.
D)Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000.
E)Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000.

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The Answer of Minstrel Manufacturing uses a job order costing system.During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
-The journal entry to record the application of factory overhead to production is:
A)Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000.
B)Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000.
C)Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000.
D)Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000.
E)Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000.

Minstrel Manufacturing Uses a Job Order Costing System