Eb13.
lo 4.7during the month, job arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account, $400 in factory depreciation expense, and $200 in property tax on the factory. prepare journal entries for the following:

record the expenses incurred.
record the allocation of overhead at the predetermined rate of $1.50 per machine hour.

Journal entries to record the expenses incurred are given below.

Debit Factory Overhead Control Account      $ 1300

Credit Utilities bills account                              $  700

Credit Accumlated factory depreciation          $  400

Credit property tax payable                              $  200

Journal entries to record the allocation of overhead at the predetermined rate of $1.50 per machine hour are given below.

Debit WiP process account                                 $ 525

Credit Factory overhead applied account          $ 525

(1.5 * 350 (machine hours))

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