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Portside Watercraft uses a job order costing system. During the month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000,
Portside Watercraft uses a job order costing system. During the month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000, of which $24,000 were indirect. Portside incurred a factory payroll cost of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the issue of indirect materials to production is: Multiple Choice Debit Raw Materials Inventory $24,000; credit Accounts Payable $24,000 Debit Factory Overhead $24,000; credit Raw Materials Inventory $24,000. Debit Raw Materials Inventory $24,000; credit Work in Process Inventory $24,000. Debit Work in Process Inventory $24,000; credit Factory Overhead $24,000. Debit Factory Overhead $24,000; credit Work in Process Inventory $24,000
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