Portside Watercraft Uses a Job Order Costing System

question 5

Multiple Choice

Portside Watercraft uses a job order costing system.During one month Portside purchased $153,000 of raw materials on credit; issued materials to production of $164,000,of which $24,000 were indirect.Portside incurred a factory payroll cost of $95,000,of which $25,000 was indirect labor.Portside uses a predetermined overhead rate of 170% of direct labor cost.
-The journal entry to record the application of factory overhead to production is:

• A)Debit Work in Process Inventory $55,800; credit Factory Overhead $55,800.
• B)Debit Work in Process Inventory $161,500; credit Factory Overhead $161,500.
• C)Debit Work in Process Inventory $119,000; credit Factory Overhead $119,000.
• D)Debit Factory Overhead $119,000; credit Work in Process Inventory $119,000.
• E)Debit Work in Process Inventory $95,000; credit Factory Payroll $95,000.

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Definitions:

Endorphins

Natural chemicals produced in the brain that interact with opioid receptors to reduce perception of pain and boost feelings of pleasure or contentment.

Hallucinogenic Drugs

Psychoactive substances that cause alterations in perception, mood, consciousness, and cognition, often inducing experiences disconnected from reality.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.

Receptors

Proteins located on the surface of cells that bind to specific molecules like hormones, drugs, or neurotransmitters, triggering various cellular responses.