Question

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2 of 4 (1 complete) -26A (similar to) tal Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company aspecte (Click the icon to view the costs.) als accountant found an error in the expense records from the year reported Depreciation on manufacturing plant and equipment was actually $415,000, not the $470.000 that had originally $456,000 and the requirements quirement 1. Prepare the journal entry to record manufacturing overhead costs incurred (Record debits first then credits Exclude explanations from any journal entries) Journal Entry i Data Table Accounts Debit Credit Manufacturing overhead costs Direct labor cost Machine hours $ 600,000 1,450,000 75.000 At the end of the year, the company had actually incurred the following Direct labor cost 1220,000 Depreciation on manufacturing plant and equipment 470,000 Property taxes on plant 20,500 Sales salaries 25.000 Delivery drivers' wages 16,500 Plant Janitors' wages 9,500 Machine hours 57,000 hours Print Done se from any list or enter any number in the input fields and then click Check Answer

Answer 1

Date	Accounts	Debit	Credit
	Factory overheads	$ 445,000
	Accumulated depreciation		$ 415,000
	Taxes payable		$    20,500
	Salaries payable		$      9,500
	To record various factory overheads
	Factory overhead	$    11,000
	Cost of Goods sold		$    11,000
	To adjust over applied factory overheads

Actual manufacturing overheads incurred: $445,000 (Depreciation on plant + Taxes on plant property + Plant Janitor's Wages)

Overheads applied = $456,000

Over applied overheads = $456,000 - $445,000 = $11,000

This should be adjusted with cost of goods sold (Balance: $560,000 pre adjustment)

After above adjustment the balance in cost of goods sold is $560,000 - $11,000 = $549,000