Information for three different companies follows. Each company applies factory overhead at the rate of 40% direct labor cost. In each scenario, the following entry was made to record the actual overhead costs: Factory Overhead Salaries Payable 85,000 50,000 Utilities Payable 15,000 Supplies 4,000 Accumulated Depreciation 16,000 Prepare a journal entry for each company to transfer raw materials to production, record direct labor costs on each job, and apply overhead at the predetermined rate. If the scenario involves underapplied or overapplied overhead, prepare an additional journal entry to transfer the amount to Cost of Goods Sold. Company A: Raw materials transferred to production totaled $100,000, and direct labor cost was $212,500. Company B: Raw materials transferred to production totaled $110,000, and direct labor cost was $200,000. Company C. Raw materials transferred to production totaled $90.000 and direct labor cost was $225.000

Information for three different companies follows. Each company applies factory overhead at the rate of 40% direct labor cost. In each scenario, the following entry was made to record the actual overhead costs: Factory Overhead Salaries Payable 85,000 50,000 Utilities Payable 15,000 Supplies 4,000 Accumulated Depreciation 16,000 Prepare a journal entry for each company to transfer raw materials to production, record direct labor costs on each job, and apply overhead at the predetermined rate. If the scenario involves underapplied or overapplied overhead, prepare an additional journal entry to transfer the amount to Cost of Goods Sold. Company A: Raw materials transferred to production totaled $100,000, and direct labor cost was $212,500. Company B: Raw materials transferred to production totaled $110,000, and direct labor cost was $200,000. Company C. Raw materials transferred to production totaled $90.000 and direct labor cost was $225.000

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Description: Information for three different companies follows. Each company applies factory overhead at the rate of 40% ofdirect labor cost. In each scenario, the following entry was made to record the actual overhead costs:Factory OverheadSalaries Payable85,00

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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