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On January 1, Bing Corporation had $23,000 of raw materials on hand. During the month, the company purchased an additional $54,000 of raw materials. During
On January 1, Bing Corporation had $23,000 of raw materials on hand. During the month, the company purchased an additional $54,000 of raw materials. During January, $50,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. Factory labor costs incurred were $200,000 of which $170,000 pertained to direct labor and the remainder was for indirect labor. Actual Manufacturing overhead costs totaled $115,000 for the month. Manufacturing overhead was applied at the rate of 70% of direct labor cost. Goods costing $300,000 were completed during the month and sold for cash of $420,000 The journal entry to record the application of manufacturing overhead would include a debit to Work in Process of $115,000 O credit to Manufacturing Overhead of $115,000 debit to Manufacturing Overhead of $110.000 debit to Work in Process of $119,000
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