The Journal Entry to Record the Flow of Costs into Department

question 21

Short Answer

The journal entry to record the flow of costs into Department 2 for applied overhead is

---

Definitions:

Financial Statement

A comprehensive report detailing a company's financial performance, position, and cash flows over a specific period.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting principles.

Drawee

In financial terms, this is the entity upon which a cheque or draft is drawn and is responsible for paying the amount.

Financial Statement

A summarized record that shows the financial health of a business or individual, including components like balance sheets, income statements, and cash flow statements.