Cavy Company estimates that the factory overhead for the following year will be $1,119,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,600 hours. The machine hours for the month of April for all of the jobs were 4,900.Required: Prepare the journal entry to apply factory overhead. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.CHART OF ACCOUNTSCavy CompanyGeneral Ledger ASSETS110Cash121Accounts Receivable131Materials133Work in Process135Factory Overhead137Finished Goods141Supplies142Prepaid Expenses181Land190Factory Equipment191Accumulated Depreciation LIABILITIES210Accounts Payable221Utilities Payable251Wages Payable EQUITY311Common Stock340Retained Earnings351Dividends390Income Summary REVENUE410Sales610Interest Revenue EXPENSES510Cost of Goods Sold520Wages Expense531Insurance Expense532Utilities Expense533Office Supplies Expense560Depreciation Expense590Miscellaneous Expense710Interest ExpensePrepare the journal entry to apply factory overhead for April 30. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. General JournalPrepare the journal entry to apply factory overhead for April 30. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journalexplanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entrywhen a credit amount is entered.12DATEDESCRIPTIONJOURNALPOST. REF.DEBITPAGE 1CREDIT

Name: Cavy Company estimates that the factory overhead for the following yea
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Description: Cavy Company estimates that the factory overhead for the following year will be $1,119,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,600 hours. The machine hours for the

The overhead is applied to the production on the basis of a predetermined overhead rate. The…

Answered: Cavy Company estimates that the factory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Cavy Company estimates that the factory overhead for the following year will be $1,119,400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,600 hours. The machine hours for the month of April for all of the jobs were 4,900.

Required:

Prepare the journal entry to apply factory overhead. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS

Cavy Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
131	Materials
133	Work in Process
135	Factory Overhead
137	Finished Goods
141	Supplies
142	Prepaid Expenses
181	Land
190	Factory Equipment
191	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Insurance Expense
532	Utilities Expense
533	Office Supplies Expense
560	Depreciation Expense
590	Miscellaneous Expense
710	Interest Expense

Prepare the journal entry to apply factory overhead for April 30. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

General Journal
Prepare the journal entry to apply factory overhead for April 30. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal
explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry
when a credit amount is entered.
1
2
DATE
DESCRIPTION
JOURNAL
POST. REF.
DEBIT
PAGE 1
CREDIT

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