What journal entry is necessary to apply factory overhead to jobs in job-order costing?

A) $\begin{array} { l }
\text {Work-In-Process Inventory }&XXX\
& \text { Factory Department Overhead Applied}&XXX\
\end{array}$

B) $\begin{array} { l }
\text {Finished Goods Inventory }&XXX\
& \text {Factory Department Overhead Applied }&XXX\
\end{array}$

C) $\begin{array} { l }
\text {Factory Department Overhead Control }&XXX\
& \text {Various accounts }&XXX\
\end{array}$

D) $\begin{array} { l }
\text {Work-In-Process Inventory }&XXX\
& \text {Factory Department Overhead Control }&XXX\
\end{array}$

Question

What journal entry is necessary to apply factory overhead to jobs in job-order costing?

A) $\begin{array} { l  }
 \text {Work-In-Process Inventory }&XXX\
& \text { Factory Department Overhead Applied}&XXX\
\end{array}$

B) $\begin{array} { l  }
 \text {Finished Goods Inventory }&XXX\
& \text {Factory Department Overhead Applied }&XXX\
\end{array}$

C) $\begin{array} { l  }
 \text {Factory Department Overhead Control }&XXX\
& \text {Various accounts }&XXX\
\end{array}$

D) $\begin{array} { l  }
 \text {Work-In-Process Inventory }&XXX\
& \text {Factory Department Overhead Control }&XXX\
\end{array}$

Quizplus · Accepted Answer

The correct journal entry to apply factory overhead to jobs in job-order costing involves debiting Work-In-Process Inventory and crediting Factory Department Overhead Control. This reflects the allocation of overhead costs to the products being manufactured.

What Journal Entry Is Necessary to Apply Factory Overhead to Jobs