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Posted: August 12th, 2024
UCSB ACCOUNTING 511 Portside Watercraft uses a job order costing system.
Portside Watercraft uses a job order costing system. During one month Portside purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect. Portside incurred a factory wages payable of $95,000, paid in cash, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the allocation of factory wages payable to production is:rev: 11_27_2015_QC_CS-34731Debit Work in Process Inventory $95,000; credit Factory Wages Payable $95,000.Debit Work in Process Inventory $70,000; debit Factory Overhead $25,000; credit Factory Wages Payable $95,000.Debit Work in Process Inventory $95,000; credit Cash $95,000.Debit Factory Wages Payable $95,000; credit Cash $95,000.Debit Work in Process Inventory $70,000; debit Factory Overhead $25,000; credit Cash $95,000.
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