ENERCISE 3-7 Applying Overhead; Journal Entries; Disposition of Underapplied or Overapplied Overhead [LO4, 1.07, 1.08] The following information is taken from the accounts of FasGrow Company. The entries in the T-acevunts are summaries of the transactions that affected those accounts during the year. The ore balances in the accounts as follows: Work in Process, ending. $32, 800 Finished Goods, 41,000 Cost of Goods Sold ending 336,200 Overhead Applied $410,000 For example, of the $80,000 ending balance in Work in Process, $ 32,800 was overhead that had been applied during the year. Required: Identify the reasons for entries (a) through (d). Assume that the company closes any balance in the Manufacturing Overhead account directly 10 Cost of Goods Sold. Prepare the necessary journal entry. Assume instead that the company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the neessary journal entry, with stupporting conputations.

ENERCISE 3-7 Applying Overhead; Journal Entries; Disposition of Underapplied or Overapplied Overhead [LO4, 1.07, 1.08] The following information is taken from the accounts of FasGrow Company. The entries in the T-acevunts are summaries of the transactions that affected those accounts during the year. The ore balances in the accounts as follows: Work in Process, ending. $32, 800 Finished Goods, 41,000 Cost of Goods Sold ending 336,200 Overhead Applied $410,000 For example, of the $80,000 ending balance in Work in Process, $ 32,800 was overhead that had been applied during the year. Required: Identify the reasons for entries (a) through (d). Assume that the company closes any balance in the Manufacturing Overhead account directly 10 Cost of Goods Sold. Prepare the necessary journal entry. Assume instead that the company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the neessary journal entry, with stupporting conputations.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PB: The following data summarize the operations during the year. Prepare a journal entry for each...

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Account balances from Boilermakers Company are as follows: Manufacturing Overhead Work in Process Finished Goods Cost of Goods Sold $240,000 underapplied 100,000 300,000 800,000 Under- or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), Cost of Goods Sold after adjustment would have a balance of Oa. $1,440,000. Ob. $640,000. Oc. $960,000. Od. $1,040,000.
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Selected information from Skylar Studios shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2
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