Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is: O Factory Overhead - Assembly Factory Overhead - Finishing Work in Process 112,500 31,500 144,000 O Factory Overhead 144,000 112,500 Work in Process - Assembly Work in Process - Finishing 31,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs.
In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had
$35,000 of direct labor cost. The entry to apply overhead to these production departments is:
O Factory Overhead - Assembly
Factory Overhead - Finishing
Work in Process
112,500
31,500
144,000
O Factory Overhead
144,000
112,500
Work in Process - Assembly
Work in Process - Finishing
31,500
O Factory Overhead
144,000
Factory Payroll
144,000
112,500
O Work in Process - Assembly
Work in Process - Finishing
Factory Overhead
31,500
144,000
O
Factory Payroll
Cash
144,000
144,000
F3
F2
0-
@
2
W
0+
3
E
F4
CO
4
F5
R
%
5
F6
T
F7
6
다
F8
Y
80
7
F9
U
*
8
Transcribed Image Text:Hou Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor cost. The entry to apply overhead to these production departments is: O Factory Overhead - Assembly Factory Overhead - Finishing Work in Process 112,500 31,500 144,000 O Factory Overhead 144,000 112,500 Work in Process - Assembly Work in Process - Finishing 31,500 O Factory Overhead 144,000 Factory Payroll 144,000 112,500 O Work in Process - Assembly Work in Process - Finishing Factory Overhead 31,500 144,000 O Factory Payroll Cash 144,000 144,000 F3 F2 0- @ 2 W 0+ 3 E F4 CO 4 F5 R % 5 F6 T F7 6 다 F8 Y 80 7 F9 U * 8
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 2 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education