The Following Account Appears in the Ledger After Only Part

question 137

Essay

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:? Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200.
(a)Prepare the journal entries to record
(1) the application of factory overhead to production during July and
(2) the jobs completed during July.
(b)What is the balance of the factory overhead account on July 31?
(c)Was factory overhead over- or underapplied on July 31?
(d)Determine the balance of Work in Process on July 31.

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Definitions:

Rate of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Monetary Policy

The process by which a country's central bank controls the supply of money, aiming to achieve macroeconomic goals like controlling inflation, consumption, growth, and liquidity.

Stabilize Economy

Efforts or policies designed to maintain economic stability by controlling inflation, reducing unemployment, and encouraging growth.

Government Debt

The total amount of money borrowed by the government of a country to fund its operations, which has not been repaid.