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During August, Hatch Company incurred factory overhead costs as follows: indirect materials, $3,050; indirect labor, $2,600; utilities cost, $1,530; and factory depreciation, $5,210. Journalize the entry to record the factory overhead incurred during August. For a compound transaction, if an amount box does not require an entry, leave it blank.

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Answer:

Dr Factory Overhead $12,390

Cr Materials $3,050 Cr Indirect labor $2,600

Cr Utilities Payable $1,530

Cr Accumulated Depreciation-Factory $5,210

Explanation:

Preparation of the jourtnal the entry to record the factory overhead incurred during August

Dr Factory Overhead $12,390

Cr Materials $3,050 Cr Indirect labor $2,600

Cr Utilities Payable $1,530

Cr Accumulated Depreciation-Factory $5,210

(To record the factory overhead incurred )

Factory Overhead= indirect materials + indirect labor + utilities cost + factory depreciation

Factory Overhead= $3,050 + $2,600 + $1,530 + $5,210

Factory Overhead= $12,390

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