Question
Melody Scott Company uses a job-order costing system and has the following data available: Beginning Direct Materials Inventory $26,000 Beginning Work-In-Process Inventory $64,000 Beginning Finished
Melody Scott Company uses a job-order costing system and has the following data available:
Beginning Direct Materials Inventory $26,000
Beginning Work-In-Process Inventory $64,000
Beginning Finished Goods Inventory $58,000
Direct materials purchased on account $148,000
Direct materials requisitioned $82,000
Direct labor cost incurred $130,000
Factory overhead incurred $146,000
Cost of goods completed $292,000
Cost of Goods Sold $256,000
Overhead application rate (based on direct labor cost) 130%
The journal entry to record the actual factory overhead costs incurred would include a ________.
A) Debit to Factory Department Overhead Control for $146,000
B) Credit to Factory Department Overhead Control for $169,000
C) Debit to Work-In-Process Inventory for $146,000
D) Credit to Work-In-Process Inventory for $169,000
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