Question

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	91,800
31	Direct labor	195,900
31	Factory overhead	X

Finished Goods
Oct. 1	Balance	12,800
31	Goods finished	305,600

If the balance of Work in Process on October 31 is $191,300, what was the amount of factory overhead applied in October?

a.$189,200

b.$195,900

c.$91,800

d.$407,200

Answer 1

Answer :- Calculation of the amount of factory overhead applied in October:-

Factory Overhead applied in October = Finished goods during october + WIP on October 31 - WIP on October 1 - Direct material - Direct labor

Factory Overhead applied in October = $305,600 + $191,300 - $20,000 - $91,800 - $195,900

Factory Overhead applied in October = $189,200

So the correct answer is option A. ( $189,200)

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