FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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
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