The journal entry to record the allocation of manufacturing overhead involves a

Question

The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Here is some basic data for Bella Company: Cost of materials purchases on account Cost of materials requisitioned (includes $2,400 of indirect) Direct labor costs incurred Manufacturing overhead costs incurred, including indirect materials Cost of goods completed Cost of goods sold Beginning raw materials inventory Beginning work in process inventory Beginning finished goods inventory Predetermined manufacturing overhead rate (as % of direct labor cost) $80,600 $55,300 $95,900 $93,600 $252,200 $137,100 $19,800 $34,400 $36,300 125% OA. $69,125. OB. $76,100 O C. $119,875 O D. $93,600.

Explanation / Answer

Manufacturing overhead applied = 95900*125%= $119875 The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of $119875 Option C is correct

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