Exercise 1623 Recording overhead costs LO P3 Prepare journal

Exercise 16-23 Recording overhead costs LO P3 Prepare journal entries to record the following production activities. 1. Paid overhead costs (other than indirect materials and indirect labor) of $20,000 2, Applied overhead at 90% of direct labor costs. Direct labor costs were $57,000. View transaction list Journal entry worksheet Record overhead costs paid. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Solution

Journal entry :

Date	accounts & explanation	debit	credit
1.	Manufacturing overhead a/c	20000
	Cash a/c		20000
	(To record overhead cost paid)
2.	Work in process a/c	51300
	Manufacturing overhead a/c (57000*90%)		51300
	(To record manufacturing overhead applied)