Winston Company estimates that the factory overhead for the following year will be $1,225,600. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 38,300 hours. The total machine hours for the year were 54,000. The actual factory overhead for the year was $1,718,000. Determine the total factory overhead amount applied. Round to the nearest dollar. $ Compute the over- or underapplied amount for the year. Enter the amount as a positive number. $ overapplied or underapplied Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. Cash Cost of Goods Sold Factory Overhead Materials Work in Process
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Winston Company estimates that the factory
- Determine the total factory overhead amount applied. Round to the nearest dollar.
$
- Compute the over- or underapplied amount for the year. Enter the amount as a positive number.
$ overapplied or underapplied
Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank.
Cash
Cost of Goods Sold
Factory Overhead
Materials
Work in Process
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