Selected accounts with some amounts omitted are as follows
| Work in Process | |||||
| Oct. 1 | Balance | 20,000 | Oct. 31 | Goods finished | X |
| 31 | Direct materials | 96,700 | |||
| 31 | Direct labor | 201,000 | |||
| 31 | Factory overhead | X | |||
| Finished Goods | |||||
| Oct. 1 | Balance | 52,000 | |||
| 31 | Goods finished | 360,000 | |||
If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?
a.$21,300
b.$42,300
c.$11,300
d.$63,300
Answer:
factory overhead applied in October = $ 63,300
Working notes for the above answer is as under
| Oct. 1 | Balance | 20,000 |
| 31 | Direct materials | 96,700 |
| 31 | Direct labor | 201,000 |
| Less: | ||
| Oct. 31 | Goods finished | -21000 |
| Oct. 31 | Finished Goods | -360,000 |
| Factory overhead | -63300 |
factory overhead applied in October
=20,000+96,700+201,000-21,000-360,000
=$ 63,300
