1.
1-
Incurred other overhead costs (record credit to Other Accounts).
2-
Application of overhead to work in process.
Incurred other overhead costs (record credit to Other Accounts).
2-
Application of overhead to work in process.
Prepare journal entries for the above transactions for the month of May.
Solution
Journal entry :
Date accounts & explanation debit credit
Manufacturing overhead 106000
Other accounts 106000
(To incurred other overhead cost)
Work in process (340000-67000)*55% 150150
Manufacturing overhead 150150
(To record applied overhead)