Question

25 Prepare journal entries to record the following production activities. 1. Paid other actual overhead costs of $20,000 in cash. 2. Applied overhead at 105% of direct labor costs. Direct labor costs were $44,000 in the Roasting department and $40,000 in the Blending department. View transaction list Journal entry worksheet < A B Record overhead costs paid. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit >

          25
Prepare journal entries to record the following production activities.
1. Paid other actual overhead costs of $20,000 in cash.
2. Applied overhead at 105% of direct labor costs. Direct labor costs were $44,000 in the Roasting department and $40,000 in the
Blending department.
View transaction list
Journal entry worksheet
<
A
B
Record overhead costs paid.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
>

25
Prepare journal entries to record the following production activities.
1. Paid other actual overhead costs of 20,000 in cash.
2. Applied overhead at 105% of direct labor costs. Direct labor costs were $44,000 in the Roasting department and $40,000 in the
Blending department.
View transaction list
Journal entry worksheet
<
A
B
Record overhead costs paid.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
>

Added by Stephanie S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

09/17/2023

Step 1

The account title is "Other Actual Overhead Costs" and the debit amount is $20,000. The cash account is credited for the same amount, $20,000. Show more…

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Journal Entry: Date: [Insert Date] Account Title: Other Actual Overhead Costs Debit: $20,000 Account Title: Cash Credit: $20,000 Record applied overhead at 105% of direct labor costs in the Roasting department Date: [Insert Date] Account Title: Applied Overhead Debit: $46,200 ($44,000 x 105%) Account Title: Roasting Department Credit: $46,200 Record applied overhead at 105% of direct labor costs in the Blending department Date: [Insert Date] Account Title: Applied Overhead Debit: $42,000 ($40,000 x 105%) Account Title: Blending Department Credit: $42,000