Wilson Manufacturing Inc. has a predetermined overhead rate of 80% of direct labor cost. During the month, $400,000 of factory labor costs was incurred, where $120,000 was indirect labor. The actual overhead incurred was $220,000. What would be the amount debited to the Work in Process (WIP) Inventory?

Wilson Manufacturing Inc. has a predetermined overhead rate of 80% of direct labor cost. During the month, $400,000 of factory labor costs was incurred, where $120,000 was indirect labor. The actual overhead incurred was $220,000. What would be the amount debited to the Work in Process (WIP) Inventory?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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