A manufacturer estimates total factory overhead costs of $4,994,000 and total direct labor costs of $2,270,000 for its first year ofoperations. During January, the company used $120,000 of direct labor cost in its Blending department and $80,000 of directlabor cost in its Bottling department. The company computes its predetermined overhead rate as a percentage of direct laborcost. Which of the following is the correct journal entry to apply factory overhead to the Blending and Bottling departments. Multiple ChoiceDebit Work in Process Inventory-Blending $264,000, debit Work in Process Inventory-Bottling $176,000,credit Factory Wages Payable $440,000Debit Work in Process Inventory-Blending $120,000; debit Work in Process Inventory-Bottling $80,000; creditFactory Overhead $200,000.Debit Work in Process Inventory $200,000, credit Factory Overhead $200,000.Debit Work in Process Inventory-Blending $264,000, debit Work in Process Inventory-Bottling $176,000;credit Factory Overhead $440,000.Debit Work in Process Inventory $440,000; credit Factory Overhead $440,000.

Name: A manufacturer estimates total factory overhead costs of $4,994,000 a
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Description: A manufacturer estimates total factory overhead costs of $4,994,000 and total direct labor costs of $2,270,000 for its first year ofoperations. During January, the company used $120,000 of direct labor cost in its Blending department and $80,000 of

The overhead is applied to the production on the basis of the pre=determined overhead rate. The…

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A manufacturer estimates total factory overhead costs of $4,994,000 and total direct labor costs of $2,270,000 for its first year of operations. During January, the company used $120,000 of direct labor cost in its Blending department and $80,000 of direct labor cost in its Bottling department. The company computes its predetermined overhead rate as a percentage of direct labor cost. Which of the following is the correct journal entry to apply factory overhead to the Blending and Bottling departments.

A manufacturer estimates total factory overhead costs of $4,994,000 and total direct labor costs of $2,270,000 for its first year of operations. During January, the company used $120,000 of direct labor cost in its Blending department and $80,000 of direct labor cost in its Bottling department. The company computes its predetermined overhead rate as a percentage of direct labor cost. Which of the following is the correct journal entry to apply factory overhead to the Blending and Bottling departments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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