Question

Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 23,200 Oct. 31 Finished goods X 31 Direct materials 90,800 31 Direct labor 197,900 31 Factory overhead X Finished Goods Oct. 1 Balance 12,300 31 Goods finished 356,300 If the balance of Work in Process on October 31 is $213,900, what was the amount of factory overhead applied in October? a.$435,000 b.$258,300 c.$197,900 d.$90,800

Answer 1

Answer:

b.$258,300

Explanation:

31 Goods finished      356,300

Add Work in Process on October 31 is $213,900,

Cost of Goods Manufactured      $ 570,200

Less   Oct.Work in Process 1 Balance 23,200

Total Manufacturing Cost  547,000

Direct labor 197,900

Direct materials 90,800

Factory Overhead Applied   $ 258,300

This is solved with the help of T accounts

If we balance both sides of the Wip and Finished good T account we get the answer.

The other way is to do reverse actions from finished Goods inventory to total Manufacturing cost to get the answer.