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undefined Hunter, Inc. is a manufacturer that uses process costing. The firm applies factory overhead to its production departments on the basis of 75% of
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Hunter, Inc. is a manufacturer that uses process costing. The firm applies factory overhead to its production departments on the basis of 75% of direct labor costs. During the most recent period, the firm used $40,000 of direct labor in the Assembly Department, and the firm used $20,000 of direct labor in the Finishing Department. The entry to apply overhead to these production departments is: a. Debit Factory Overhead-Assembly $30,000; debit Factory Overhead-Finishing $15,000; credit Work in Process Inventory $45,000. o O b. Debit Factory Overhead $45,000; credit Work in Process Inventory- Assembly $30,000; credit Work in Process-Finishing $15,000. C. Debit Work in Process Inventory-Assembly $40,000; debit Work in Process Inventory-Finishing $20,000; credit Factory Wages Payable $60,000. d. Debit Factory Overhead $45,000; credit Factory Wages Payable $45,000. e. Debit Work in Process Inventory-Assembly $30,000; debit Work in Process Inventory-Finishing $15,000; credit Factory Overhead $45,000Step by Step Solution
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