Gardner Machine Shop Uses a Predetermined Manufacturing Overhead Rate of $63.20

question 132

Multiple Choice

Gardner Machine Shop uses a predetermined manufacturing overhead rate of $63.20 per direct labor hour. In January, Gardener completed job number A33, which included 15 direct labor hours. Which of the following correctly describes the journal entry needed to allocate overhead to the job?

• A) Debit Finished goods for $948, credit Manufacturing overhead for $948
• B) Debit Manufacturing overhead for $948, credit Work in process for $948
• C) Debit Work in process for $948, credit Manufacturing overhead for $948
• D) Debit Cost of goods sold for $948, credit Finished goods for $948

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