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 $23,000. The entry to record the factory overhead applied to production is

Question

Quizplus · Accepted Answer

The entry to record the factory overhead applied to production is to debit Work in Process and credit Factory Overhead for the same amount, $23,000. Choice A and D are incorrect because Accounts Payable is not involved in this transaction, and the amount of overhead applied is $23,000, not $25,000. Choice B is incorrect because it reverses the debit and credit accounts.

During the Period, Labor Costs Incurred on Account Amounted to $175,000