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During May, Darling Company incurred factory overhead costs as follows: indirect materials, $2,250; indirect labor, $6,370; utilities cost, $2,660; and factory depreciation, $3,320.

Required:
Journalize the entry to record the factory overhead incurred during May.

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Answer:

factory overheads $14,600 (debit)

indirect materials, $2,250 (credit)

indirect labor, $6,370 (credit)

utilities cost, $2,660 (credit)

factory depreciation, $3,320 (credit)

Explanation:

The factory overheads account is debited with factory overheads actually incurred during the period.

Overheads applied to work in process are credited in the overheads account.

This leaves the balance of over or under-applied overheads on either the debit or credit of this account.

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