Total manufacturing overhead cost actually incurred
Under-applied manufacturing overhead
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.)
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.
entry is required for a transaction/event, select "No journal entry required" in the first account field.)