Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor cost. The data that follow pertain to job no 831. If Armada adds a 30% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale of job no 831? Choice E Choice D Choice C Choice A Choice B Solution Hi, Please find the detailed answer as follows: Total Sales Value = (Direct Material + Direct Labor + Manufacturing Overhead)*(1+30%) = (140000 + 41000 + 150%*41000)*(1+30%) = $315250 Journal Entry: Accounts Receivable Dr. 315250 Sales Cr. 315250 Option B (Accounts Receivable, $315250) is the correct answer. Thanks. .

1. Armada Company applies manufacturing overhead by using a predetermined rate of 150% of
direct labor cost. The data that follow pertain to job no 831. If Armada adds a 30% markup on
total cost to generate a profit, which of the following choices depicts a portion of the accounting
needed to record the credit sale of job no 831? Choice E Choice D Choice C Choice A Choice B
Solution
Hi,
Please find the detailed answer as follows:
Total Sales Value = (Direct Material + Direct Labor + Manufacturing Overhead)*(1+30%) =
(140000 + 41000 + 150%*41000)*(1+30%) = $315250
Journal Entry:
Accounts Receivable Dr. 315250
Sales Cr. 315250
Option B (Accounts Receivable, $315250) is the correct answer.
Thanks.