Question: 1. Which of these products is likely to involve job order production?
(a) inexpensive watches,
(b) racing bikes,
(c) bottled soft drinks, or
(d) athletic socks.
2. During the current month, a company that uses a job order cost accounting system incurred a monthly factory payroll of $120,000, paid in cash. Of this amount, $30,000 is classified as indirect labor and the remainder as direct for the production of Job 65A. Factory overhead is applied at 150% of direct labor. Prepare the entry to apply factory overhead to this job lot.