chapter 15 mini test questions 9

and 10

9 At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end? Multiple Choice O No entry is needed. O Debit Factory Overhead $5,000; credit Cost of Goods Sold $5,000. Debit Cost of Goods Sold $5,000; credit Factory Overhead $5,000. Debit Factory Overhead $5,000; credit Work in Process Inventory $5,000 Debit Factory Overhead $5,000; credit Finished Goods Inventory $5,000. 10 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 payroll cost of $95.000, 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 application of factory overhead to production is: Multiple Choice Debit Work in Process Inventory $55,800; credit Factory Overhead $55,800 O Debit Work in Process Inventory $161,500; credit Factory Overhead $161,500. Debit Work in Process Inventory $119,000; credit Factory Overhead $119.000. Debit Factory Overhead $119,000; credit Work in Process Inventory $119,000. Debit Work in Process Inventory $95,000; credit Factory Payroll $95.000