yamada company applies factory overhead to its production departments on the basis of 90% of direct labor costs. in the assembly department, yamada had $125,000 of direct labor cost, and in the finishing department, yamada had $35,000 of direct labor cost. the entry to apply overhead to these production departments is:
A. Debit Factory Overhead - Assembly $112,500; Debit Factory Overhead - Finishing $31,500; Credit Work in Process Inventory $144,000.
B. Debit Factory Overhead $144,000; Credit Work in Process Inventory - Assembly $112,500; Credit Work in Process - Finishing $31,500.
C. Debit Factory Overhead $144,000; Credit Factory Payroll $144,000.
D. Debit Work in Process Inventory - Assembly $112,500; Debit Work in Process Inventory - Finishing $31,500; Credit Factory Overhead $144,000.
E. Debit Factory Payroll $144,000; Credit Cash $144,000.

Respuesta :

Debit Work in Process Inventory - Assembly $112,500; Debit Work in Process Inventory - Finishing $31,500; Credit Factory Overhead $144,000

Assembly = $125000 * 0.90 = 112,500

Finishing = $35000 * 0.90  = 31,500

stock (American English) or inventory (British English) refers to the goods and substances that a commercial enterprise holds for the final goal of resale, production, or utilization.[nb 1] inventory management is a subject often about specifying the form and site of stocked goods. it's miles required at special locations inside a facility or inside many places of a supply community to precede the regular and deliberate path of production and inventory of materials. The concept of inventory, stock or paintings in process (or paintings in progress) has been prolonged from production structures to carrier companies [1][2][3] and projects,[4][5] through generalizing the definition to be "all paintings inside the manner of manufacturing - all work this is or has passed off prior to the final touch of production".

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