Reference no: EM132760638

Problem 1: What is the entry to journalize the incurrence of P50,000 general factory overhead and payment of 90%?

A. Factory Overhead Applied P50,000

Cash P50,000

B. Factory Overhead Applied P50,000

Cash P45,000

Accounts Payable 5,000

C. Factory Overhead Control P50,000

Cash P50,000

D. Factory Overhead Control P50,000

Cash P45,000

Accounts Payable 5,000

Two of the components of actual factory overhead are the following:

Depreciation P35,000

Expired Insurance 5,000

Problem 2: The Journal entry is:

A. Debit: Factory Overhead Control P40,000

Credit: Accumulated Depreciation P35,000, Prepaid Insurance 5,000

B. Debit: Factory Overhead Applied P40,000

Credit: Accumulated Depreciation P35,000, Prepaid Insurance P5,000

C. Debit: Depreciation Expense P35,000, Insurance Expense P5,000

Credit: Factory Overhead Applied P40,000

D. Debit: Depreciation Expense P35,000, Insurance Expense P5,000

Credit: Accumulated Depreciation P35,000, Prepaid Insurance P5,000