A summary of the time tickets for August follows: Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost. ANS: O C WIP 43200 Wages payable 43200 WIP 26090 Factory overhead 26040 The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling Department had 3,000 liters in beginning work in process inventory (30% complete). During the period 71,000 liters were completed. The ending work in process was 5,000 liters (70% completed). What are total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process? 66,000 ANS:
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