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2Applied Allocation

2Applied Allocation - Ending Balance of Work in Process $...

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Jessica Co. uses a job order costing system that applies overhead to WIP using a predetermined overhead application rate. You are provided with the following information related to Jessica’s accounting period ended 12/31/06: Estimated OH (on 9/8/05) for the year that will end 12/31/06: $ 480,000 Estimated Machine hours for the year that will end 12/31/06: 120,000 MH Actual Machine Hours for the year ended 12/31/06: 117,000 MH Actual OH for the year that ended 12/31/06: $ 448,000 Applied OH during the year that ended 12/31/06: $ 468,000 Ending Balance Raw Materials 12/31/06: $ 32,000
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Unformatted text preview: Ending Balance of Work in Process 12/31/06: $ 102,400 Ending Balance of Finished Goods on 12/31/06: $ 307,200 Cost of Goods Sold during the year ended 12/31/06: $ 870,400 Sunk Costs recorded on the Balance Sheet at 12/31/06: $2,400,000 Opportunity Costs recorded on the books during the year ended 12/31/06: $ none 1. What Journal Entry would effectively close the Overhead accounts and adjust the appropriate Balance Sheet and Income Statement accounts by allocating any over/under applied overhead proportionally based on ending balances ? Account Debit Credit...
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