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Portside Watercraft uses a job order costing system. During one month Portside purchased $153,000 of raw...

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 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:

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Answer -

The journal entry to record the application of factory overhead to production is:

General Journal Debit ($) Credit ($)

Work in Process Inventory [($95000 - $25000) * 170%]

Factory Overhead

119000

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119000


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