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Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000

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Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were Indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The Journal entry to record the application of factory overhead to production is: Multiple Choice Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000. Debit Work in Process Inventory $165,000 credit Factory Overhead $165.000 Debit Factory Payroll $150,000 credit Work in Process Inventory $150.000 Debit Factory Overhead $165,000, credit Work In Process Inventory $165,000 Debit Work In Process inventory $165,000 credit Factory Payroll $165.000

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