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Unformatted text preview: $72,000 Factory overheads a/c $72,000 (Being the application of manufacturing overheads at the rate of 150% on direct labor cost = $48,000 x 150%) 7) Finished goods inventory a/c Dr $88,000 Work-in-progress inventory a/c $88,000 (Being the transfer of completed goods to finished goods inventory) 8) Accounts Receivables a/c Dr $103,000 Sales revenue a/c $103,000 (being the sale made on account) 9) Cost of goods sold a/c Dr $75,000 Finished goods inventory a/c $75,000 (being the cost of the goods sold recorded) 10) Cost of goods sold a/c Dr $21,200 Factory overheads a/c $21,200 (Being the under-applied overhead debited to cost of goods sold) Factory overheads applied = $72,000 Actual overheads incurred = $93,200 Underapplied overheads= $21,200...
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- Spring '11