At the beginning of January, Bijeaux Beach Balls Inc had 10,000 units in beginning inventory that were 60% complete as to DM and 20% complete as to CC in the Forming Department. The costs associated with this beginning inventory as show below: T-Account.JPG Each unit goes through 2 departments - Forming and Packaging. During the period, 90,000 units were place into production into Forming Department (Department #1). During the period the following happened: $450,000 of raw materials were purchased this month on account. $440,000 of direct materials were requisitioned to the Forming department. $5,600 of indirect materials were requisitioned to the Forming department. $168,000 of direct labor was used in the Forming department. $28,000 of indirect labor was used in the Forming department. The Forming department depreciation for its equipment was $7,000. Other actual FOH for the Forming department was $56,000. (all on account) FOH is applied based on a predetermined FOH rate. This rate is based on direct labor dollars. Estimated FOH for the year was $900,000. Estimated direct labor dollars for the year was $1,500,000. Prepare the journal entry to apply FOH to the Forming Department this month. At the end of the month, Ending WIP inventory for the Forming department consisted of 40,000 beach balls that were 50% complete regarding their materials and 25% complete as to their conversion costs. When Bijeaux journalizes entry #9, the will debit [ Select ] and credit [ Select ] for $566,400 [ Select ] At the end of January, Factory Overhead was [ Select ] by $4,200 [ Select ] . The WIP - Forming Department account will have a [ Select ] balance of [ Select ] at the end of the January.

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To apply Factory Overhead FOH to the Forming Department this month we need to calculate the FOH rate ... View the full answer