jennydoesthings5092 jennydoesthings5092
  • 23-06-2021
  • Business
contestada

During January, Dream House Builders, Inc. incurred $550 of actual indirect materials costs, as supported by materials requisitions.

Required:
Draw the journal entry.

Respuesta :

andromache andromache
  • 25-06-2021

Answer and Explanation:

The journal entry is given below:

Factory overhead Dr $550

      To Raw material inventory $550

(being the actual indirect material cost is recorded)

Here the factory overhead is debited as it increased the expense while the raw material inventory is credited as it decreased the assets

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