27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Factory overhead costs

During May, Bergan Company incurred factory overhead costs as follows: indirect materials, $8,800; indirect labor, $6,600; Utilities cost, $4,800; and factory depreciation, $9,000. Journalize the entry to record the factory overhead incurred during May.

To determine

Factory overhead

It includes all manufacturing costs except direct material cost and direct labor cost. Factory overhead cost includes all costs like indirect materials, indirect labor, factory power and factory depreciation.

To record: Journal entry the factory overhead incurred.


The journal entry is prepared as follows:

Date Account titles and Explanation Debit
May   Factory overhead 29,200  
      Materials   8,800
      Wages Payable   6,600

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