COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Golf House manufactures custom golf shoes. Janet, the company accountant, is preparing the month end financial statement and reports for the company. The Golf House records applied (estimated) overhead to Job Cost Sheets as a percentage of Direct Labor Costs. The rate that the Golf House uses is 80% and the direct labor costs from the Job Cost Sheets for the month of March totaled $220, 000. Actual factory overhead was $166, 000. What is the journal entry to dispose of over applied Factory Overhead?
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Debit Work in Process for $10, 000 and Credit Factory Overhead for $10, 000
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Debit Factory Overhead for $10, 000 and Credit Work in Process for $10, 000.
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Debit Income Summary for $10, 000 and Credit Factory Overhead for $10, 000
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Debit Factory Overhead for $10, 000 and Credit Income Summary for $10, 000
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Explanation:
There is 1 question to complete.