Ch. 17 Exam The Brass Works is in the process of appropriate. The insurance polc
ID: 2552138 • Letter: C
Question
Ch. 17 Exam The Brass Works is in the process of appropriate. The insurance polcy and electric bil were paid in cash at the time of acquisition. Next calodate the overhead application rate and apply overhead to Work in Process a Brass works purchases an insurance policy for $4,000. It is computed that 80% of the value of the policy protects production, the balance protects the admir strative offices. Brass works dar es insurance initially to expense. If an amount box does not require an eetry, leave it blank. events (a) - (d) to Factory Payroll reports that the sales manager's salary for the period is S 3,500 and that production supervisors wages for the period are SS 500 if an amount box does not require an entry, leave it bla KP O Type here to search oel@Explanation / Answer
Journal entries S.no. Accounts title and explanations Debit $ Credit $ a Factory Overheads Dr. 3200 Admin Overheads Dr. 800 Cash Account 4000 b Factory Overheads Dr. 1,200 Cash Account 1,200 c Selling Overheads Dr. 3500 Factory Overheads Dr. 5500 Wages payable 9000 d Factory Overheads Dr. 2575 Raw material Inventory 2575 e. Rate of Factory Overheads per Drop Forge Stroke: Amount of Factory Overheads (3200+1200+5500+2575) 12475 Number of Drop Forge Strokes 1000 Factory Oh rate per Drop forge stroke 12.475 f. Work In process Inventory Dr. 14346 Factory Overheads (1150 drop forge *12.475) 14346