Edwards Company produces calendars in a one-department process. The following information is available:
The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-In process costing, the journal entry to record factory overhead applied would include a
A) debit to Factory Overhead.
B) debit to Work-in-processDepartment Name.
C) credit to Cost of Goods Sold.
D) credit to Finished Goods.

Question

Edwards Company produces calendars in a one-department process. The following information is available:
  The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-In process costing, the journal entry to record factory overhead applied would include a
A) debit to Factory Overhead. 
B) debit to Work-in-processDepartment Name. 
C) credit to Cost of Goods Sold. 
D) credit to Finished Goods.

Quizplus · Accepted Answer

The journal entry to record factory overhead applied would include a debit to Work-in-processDepartment Name because this account is used to track the costs of production for each department.

Edwards Company Produces Calendars in a One-Department Process