During August, Rothchild Company incurred factory overhead costs as follows: indirect materials, $17,500; indirect labor

During August, Rothchild Company incurred factory overhead costs as follows: indirect materials, $17,500; indirect labor, $22,000; utilities cost, $9,600; and factory depreciation, $17,500. Journalize the entry to record the factory overhead incurred during August.

Answer:


Factory Overhead 66,600  
Materials  17,500 
Wages Payable  22,000 
Utilities Payable  9,600 
Accumulated Depreciation—Factory  17,500 


During February, Gross Company incurred factory overhead costs as follows: indirect materials, $34,000; indirect labor, $81,000; utilities cost, $10,000; and factory depreciation, $61,000. Journalize the entry to record the factory overhead incurred during February.

Answer:


Factory Overhead 186,000  
Materials  34,000 
Wages Payable  81,000 
Utilities Payable  10,000 
Accumulated Depreciation—Factory  61,000 


During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42. Journalize the entry to record the flow of labor costs into production during August.

Answer:


Work in Process* 186,200  
Wages Payable  186,200 
* Job 40 

$ 87,500 

= 3,500 hours × $25 
Job 42     98,700 = 4,200 hours × $23.50 
Total $186,200