Machine-hours Manufacturing overhead cost Inventories at year-end: Raw materials Work in process (includes overhead applied of $71,100) Finished goods (includes overhead applied of $134,300) Cost of goods sold (includes overhead applied of $584,600) Required: 1. Compute the underapplied or overapplied overhead. 79,000 $ 836,000 $ 15,000 $ 171,900 $ 324,700 $ 1,413,400 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cos of Goods Sold Prepare the appropriate journal entry

Machine-hours Manufacturing overhead cost Inventories at year-end: Raw materials Work in process (includes overhead applied of $71,100) Finished goods (includes overhead applied of $134,300) Cost of goods sold (includes overhead applied of $584,600) Required: 1. Compute the underapplied or overapplied overhead. 79,000 $ 836,000 $ 15,000 $ 171,900 $ 324,700 $ 1,413,400 2. Assume the company closes underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3. Assume the company allocates underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cos of Goods Sold Prepare the appropriate journal entry

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...

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