Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

elected accounts with some amounts omitted are as follows Work in Process Aug. 1

ID: 2394188 • Letter: E

Question

elected accounts with some amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials X 31 Direct labor 450,000 31 Factory overhead X Factory Overhead Aug. 1—31 Costs incurred 145,000 Aug. 1 Balance 15,000 31 Applied X If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

a. $120,000

b. $10,000

c. $135,000

d. $70,000

Explanation / Answer

Amount debited to WIP for factory overhead = Amount of factory overhead applied = Direct labor cost*30% = 450000*30% = $   1,35,000