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4 October, 06:26

Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance $275,000 31 Direct materials X 31 Direct labor 450,000 31 Factory Overhead X Aug 31 Goods finished $1,030,000 Factory Overhead Aug 1-31 Cost incurred $145,000 Aug 1 Balance $15,000 31 Applied X If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

a. $120,000

b. $135,000

c. $70,000

d. $10,000

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Answers (1)
  1. 4 October, 07:16
    0
    b. $135,000

    Explanation:

    amount debited to WIP = direct labor cost*overhead rate

    = $450,000*30%

    = $135,000

    Therefore, at $135,000 was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs.
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