The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200.
a) Prepare the journal entries to record 1) the application of factory overhead to production during July and 2) the jobs completed during July.
b) What is the balance of the factory overhead account on July 31?
c) Was factory overhead over applied or under applied on July 31?
d) Determine the balance of Work in Process on July 31.

Question

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:  Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200.
a) Prepare the journal entries to record 1) the application of factory overhead to production during July and 2) the jobs completed during July.
b) What is the balance of the factory overhead account on July 31?
c) Was factory overhead over applied or under applied on July 31?
d) Determine the balance of Work in Process on July 31.

Quizplus · Accepted Answer

The Answer of The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:  Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200.
a) Prepare the journal entries to record 1) the application of factory overhead to production during July and 2) the jobs completed during July.
b) What is the balance of the factory overhead account on July 31?
c) Was factory overhead over applied or under applied on July 31?
d) Determine the balance of Work in Process on July 31.

The Following Account Appears in the Ledger After Only Part