Factory overhead - General Journal Date Account Title and...

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Factory overhead In a process company, factory overhead represents those costs not directly assigned to one function.  For example, the depreciation expense of a machine used solely by the preparation function would  be assigned to work-in-process inventory for the preparation department while depreciation expense  for the plant (the factory building) would be assigned to factory overhead as all functions occupy the  plant. The journal entries that follow illustrate the accounting for general overhead costs. 
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Unformatted text preview: General Journal Date Account Title and Description Ref. Debit Credit 20X2 June 30 Factory Overhead 2,300 (E) Prepaid Insurance 1,000 Accounts Payable-Electric Utilities 1,200 Cash 100 June overhead × costs (H) Work-in-Process Inventory-Preparation 435 Work-in-Process Inventory-Baking 3,000 Work-in-Process Inventory-Packaging 2,090 Factory Overhead 5,525 Overhead allocated based on predetermined rates...
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