\"Bard Manufacturing uses a job order cost accounting system. During one month B

Question

"Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the allocation of the factory payroll to production is:" a. Debit Goods in Process Inventory $150,000; credit Factory Payroll $150,000. b. Debit Goods in Process Inventory $150,000; credit Cash $150,000. c. Debit Factory Payroll $150,000; credit Cash $150,000. d. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Payroll $150,000. e. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Cash $150,000

Explanation / Answer

It's actually D. I copied and pasted the wrong one: d. Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Payroll $150,000.

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