Total manufacturing overhead cost actually incurred

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Total manufacturing overhead cost actually incurred $ 850,000 Under-applied manufacturing overhead $ 130,000 3. Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 0 test 13252701173247
4. Assume that the company allocates any underapplied or overapplied overhead to Work in Process, Finished Goods, and Cost of Goods Sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year. These amounts are $36,000 for work in process, $180,000 for finished goods, and $504,000 for cost of goods sold. Prepare the journal entry to show the allocation for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter 9: Acquisitions of Property 9-13 5. How much higher or lower will net operating income be for the year if the underapplied or overapplied overhead is allocated rather than closed directly to Cost of Goods Sold?

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