Wilson Company has a predetermined overhead rate of 70% of direct labor cost. During the month, $350,000 of factory labor costs are incurred in which $100,000 is indirect labor. Actual overhead incurred was $180,000. What would be the amount debited to the Work In Process Inventory?

Wilson Company has a predetermined overhead rate of 70% of direct labor cost. During the month, $350,000 of factory labor costs are incurred in which $100,000 is indirect labor. Actual overhead incurred was $180,000. What would be the amount debited to the Work In Process Inventory?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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Question

What would be the amount debited to the work in process Inventory on these accounting question?

Wilson Company has a predetermined overhead
rate of 70% of direct labor cost. During the month,
$350,000 of factory labor costs are incurred in
which $100,000 is indirect labor. Actual overhead
incurred was $180,000. What would be the amount
debited to the Work In Process Inventory?

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