Docksider Boats Uses a Job Order Cost Accounting System

question 22

Multiple Choice

Docksider Boats uses a job order cost accounting system. During one month Docksider purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect. Docksider incurred a factory payroll of $95,000, paid in cash, of which $25,000 is classified as indirect labor. Docksider uses a predetermined overhead application rate of 170% of direct labor cost. The journal entry to record the application of factory overhead to production is:

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

---

Definitions:

.sav File

A file extension used by SPSS (Statistical Package for the Social Sciences) to store data sets, including variables, cases, and their values.

.csv File

A file format (Comma-Separated Values) used to store tabular data such as numbers and text in a plain text form.

SPSS

Statistical software package used for data management, statistical analysis, and graphics, acronym for Statistical Package for the Social Sciences.

Privacy

The state or condition of being free from unauthorized intrusion or disclosure of personal information.