Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for overhead allocation is:

Question

Quizplus · Accepted Answer

The question states that the journal entry is for overhead allocation, which means that we need to debit Goods in Process Inventory for the total overhead cost and credit Factory Overhead for the same amount. Therefore, the correct answer is option C, which debits Goods in Process Inventory for $248,000 and credits Factory Overhead for the same amount. Option A is incorrect as it only records the cash payment and does not allocate overhead. Option B is not a correct entry since factory payroll is a direct cost and not part of overhead allocation. Option D is incorrect because it only allocates $160,000 while the question clearly states the overhead cost is $248,000. Option E is also not applicable since it does not allocate overhead cost.

Embark Produces Mulch for Landscaping Use