A manufacturer estimates total factory overhead costs of $4,906,000 and total direct labor costs of $2,230,000 for its first year of operations. During January, the company used $105,000 of direct labor cost in its Blending department and $75,000 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.

Multiple Choice

a] Debit Work in Process Inventory $180,000; credit Factory Overhead $180,000.

b] Debit Work in Process InventoryBlending $105,000; debit Work in Process InventoryBottling $75,000; credit Factory Overhead $180,000.

c] Debit Work in Process InventoryBlending $231,000; debit Work in Process InventoryBottling $165,000; credit Factory Wages Payable $396,000.

d] Debit Work in Process Inventory $396,000; credit Factory Overhead $396,000.

e] Debit Work in Process InventoryBlending $231,000; debit Work in Process InventoryBottling $165,000; credit Factory Overhead $396,000.