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A manufacturer estimates total factory overhead costs of $4,773,000 and total direct labor costs of $2,220,000 for its first year of operations. During January, the
A manufacturer estimates total factory overhead costs of $4,773,000 and total direct labor costs of $2,220,000 for its first year of operations. During January, the company used $100,000 of direct labor cost in its Blending department and $80,000 of direct labor cost in its Bottling department. The company computes its predetermined overhead rate as a percentage of direct labor cost. Which of the following is the correct journal entry to apply factory overhead to the Blending and Bottling departments. Debit Work In Process Inventory-Blending $215,000; debit Work In Process Inventory-Bottling $172,000; credit Factory Wages Payable $387,000. Debit Work In Process Inventory $180,000; credit Factory Overhead $180,000. Debit Work In Process Inventory-Blending $100,000; debit Work In Process Inventory-Bottling $80,000; credit Factory Overhead $180,000. Debit Work In Process Inventory-Blending $215,000; debit Work In Process Inventory-Bottling $172,000; credit Factory Overhead $387,000. Debit Work In Process Inventory $387,000; credit Factory Overhead $387,000
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