Walsh Corporation incurred $69,000 of actual Manufacturing Overhead costs during
ID: 2520906 • Letter: W
Question
Walsh Corporation incurred $69,000 of actual Manufacturing Overhead costs during October. During the same period, the Manufacturing Overhead applied to Work in Process was $70,000. The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a: 2 Select one: O a. debit to Manufacturing Overhead of $69,000 O b. debit to Work in Process of $70,000 O c. credit to Manufacturing Overhead of $69,000 O d. credit to Work in Process of $70,000 Walsh Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor- hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed: t of 2Explanation / Answer
Manufacturing overhead is the indirect manufacturing costs that is incurred while production of goods. When actual manufacturing overhead is incurred the manufacturing overhead account is debited and when it is applied the work in process Inventory is debited.
The journal entry to record the incurrence of the actual manufacturing overhead will include:
a. debit to Manufacturing Overhead of $69,000
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