Question
Horton Company uses a normal costing system. Factory overhead is allocated on the basis of labor hours. At the beginning of the year, management estimated
Horton Company uses a normal costing system. Factory overhead is allocated on the basis of labor hours. At the beginning of the year, management estimated that the company would incur $1,050,000 of manufacturing overhead costs and use 70,000 labor hours. The company recorded the following events during the month of March.
(a) Purchased $800,000 of materials on account.
b) Used $600,000 of materials in production, of which $80,000 were used as indirect materials.
(c) Incurred $250,000 of direct labor costs and $50,000 of indirect labor costs.
(d) Recorded depreciation on equipment for the month, $22,000.
(e) Paid $8,000 cash for utilities and other miscellaneous items for the manufacturing plant.
(f) Used 10,000 labor hours during March.
The debit to Work-in-Process Inventory account for materials is: Group of answer choices
$80,000
$520,000
$600,000
$800,000
The credit to Manufacturing Overhead Allocated account is: Group of answer choices
$150,000
$140,000
$180,000
$160,000
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