Recall that depreciation gets accumulated in a contra

This preview shows page 3 - 5 out of 7 pages.

$ 7 comma 200$7,200. Recall that depreciation gets accumulated in a contra asset account and the offsetting entry is for the expense (the amount of the asset that is being used up). Next we have commissions payable of $ 32 comma 000$32,000 and advertising payable of $ 95 comma 000$95,000. Remember that payables are liabilities, that is we owe the money at a future date. Now record the depreciation and payables amounts and record the offsetting expense amounts. Journal Entry Accounts Debit Credit (8.) Administrative Expense 7,200 Advertising Expense 95,000 Salary Expense (Sales Commissions) 32,000 Salary Payable Control 32,000 Accounts Payable Control 95,000 Accumulated Depreciation Control 7,200 To verify the amounts for the depreciation on office equipment, the commissions payable and the advertising payable use the source documents such as depreciation schedules, payroll requests, sales commissions schedules, and vendor invoices. As with manufacturing costs, subsidiary ledgers for marketing and customer-service payroll as well as records for different types of advertising costs can be maintained. Press Continue to see more. For the final entry, we need to dispose of the over- or underallocated manufacturing overhead. We know that the over- or underallocated overhead is the difference between the manufacturing overhead applied and the actual manufacturing overhead. To determine the actual manufacturing overhead, we need to add the total debits to the Manufacturing overhead control account. (Use parentheses or a minus sign for overallocated amounts.)
Image of page 3
LOADING... (Click the icon for assistance calculating the actual manufacturing overhead costs.) Underallocated/ Actual manufacturing overhead Allocated manufacturing overhead = (Overallocated) For the final entry, we need to dispose of the over- or underallocated manufacturing overhead. We know that the over- or underallocated overhead is the difference between the manufacturing overhead applied and the actual manufacturing overhead. To determine the actual manufacturing overhead, we need to add the total debits to the Manufacturing overhead control account. (Use parentheses or a minus sign for overallocated amounts.) LOADING... (Click the icon for assistance calculating the actual manufacturing overhead costs.) Underallocated/ Actual manufacturing overhead Allocated manufacturing overhead = (Overallocated) $200,400 $278,400 = $(78,000) Dispose of over- or underallocated manufacturing overhead. Remember that the difference between manufacturing overhead allocated and actual manufacturing overhead gets recorded to cost of goods sold. Journal Entry Accounts Debit Credit (1.) Materials Control 126,000 Accounts Payable Control 126,000 (2.) Work-in-Process Control 118,200 Materials Control 118,200 (3.) Work-in-Process Control 87,000 Manufacturing Overhead Control 54,900 Wage Payable Control 141,900 (4.) Manufacturing Overhead Control 145,500 Wages Payable Control 24,000 Accounts Payable Control 9,500 Accumulated Depreciation Control 39,000 Rent Payable Control 73,000 (5.) Work-in-Process Control 278,400 Manufacturing Overhead Allocated 278,400 LOADING...
Image of page 4

Want to read all 7 pages?

Image of page 5

Want to read all 7 pages?

You've reached the end of your free preview.

Want to read all 7 pages?

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern