Question
The following information relates to Wells Fargo for July 2008: Actualdirectlabourcosts R80000 Actualdirectlabourrateperhour R8 Factoryoverheadrateperdirectlabourhour R12 Factoryoverheadincurred R160000 Assumingunderappliedoroverappliedoverheadistransferredtocostofgoodssoldattheendoftheperiod,whichofthefollowingwouldbetheentrytothecostofgoodssoldaccount? A.R80 000 debit B.R80 000 credit
The following information relates to Wells Fargo for July 2008:
Actualdirectlabourcosts
R80000
Actualdirectlabourrateperhour
R8
Factoryoverheadrateperdirectlabourhour
R12
Factoryoverheadincurred
R160000
Assumingunderappliedoroverappliedoverheadistransferredtocostofgoodssoldattheendoftheperiod,whichofthefollowingwouldbetheentrytothecostofgoodssoldaccount?
A.R80 000 debit
B.R80 000 credit
C.R40 000 credit
D.R40 000 debit
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Financial & Managerial Accounting
Authors: Jan Williams
16th Edition
78111048, 978-0078111044
