Jack Company Uses a Job-Order-Cost System and Had the Following

question 148

Multiple Choice

Jack Company uses a job-order-cost system and had the following data available: $$\begin{array} { l r } \text { Beginning direct-materials inventory } & \$ 26,000 \\\text { Beginning WIP inventory } & 64,000 \\\text { Beginning finished-goods inventory } & 58,000 \\\text { Direct materials purchased on account } & 148,000 \\\text { Direct materials requisitioned } & 82,000 \\\text { Direct-labor cost incurred } & 130,000 \\\text { Factory overhead incurred } & 146,000 \\\text { Cost of goods completed } & 292,000 \\\text { Cost of goods sold } & 256,000 \\\text { Overhead application rate } & 130 \% \\\quad \text { as a percent of direct-labor cost) } &\end{array}$$ The journal entry to record the factory overhead costs incurred would include a _____.

• A)debit to Factory Department Overhead Control for $146,000
• B)credit to Factory Department Overhead Control for $169,000
• C)debit to WIP Inventory for $146,000
• D)credit to WIP Inventory for $169,000

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Definitions:

Accrued Expense

Expenses that have been incurred but not yet paid, representing a company's obligation to make future payments.

Salary Owed

The amount of remuneration that an employer is legally obligated to pay to an employee for the work that has already been completed.

Fire Insurance

Fire insurance is a type of property insurance that covers damage and losses caused by fire, providing compensation to the policyholder.

Supplies Expense

Costs associated with consumable items or supplies used during an accounting period.