The Cavy Company estimates that the factory overhead for the following year will be $909,600. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 37,900 hours. The machine hours for the month of April for all of the jobs was 4,800.

Required:

Prepare the journal entry to apply factory overhead. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Cavy Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
131	Materials
133	Work in Process
135	Factory Overhead
137	Finished Goods
141	Supplies
142	Prepaid Expenses
181	Land
190	Factory Equipment
191	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Insurance Expense
532	Utilities Expense
533	Office Supplies Expense
560	Depreciation Expense
590	Miscellaneous Expense
710	Interest Expense

General Journal

Prepare the journal entry to apply factory overhead for April 30. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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