Answer:
B. $113,120
Explanation:
The double entry is in the attached is to explain how the answer was arrived at.
O.H.
The figure $90,720 on the credit side of factory overhead account is the amount of factory overhead charged to production.
D.L.
Since factory overhead is 60% of direct labor cost, we gross the factory overhead up to 100% by dividing $90,720 by 60% to get $151,200.
F.G.
The $324,800 on the debit of finished goods inventory is the finished goods in process inventory completed in the period transferred to finished goods inventory.
D.M.
This is a balancing figure after entering all other figures in the finished goods account.
