Question

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applieReq 1 Req 2 Req 3 Req 4 Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. PreparReq 1 Req 2 Req 3 Req 4 Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work inReq 1 Req 2 Req 3 Req 4 How much higher or lower will net operating income be if the underapplied or overapplied overhead is

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1) Applied overhead = 77000*19 = 1463000

Actual overhead = 1574000

Under applied overhead = 1463000-1574000 = 111000

2) Adjusting entry

Date account and explanation Debit Credit
Cost of goods sold 111000
Manufacturing overhead 111000

3) Adjusting entry

Date account and explanation Debit Credit
Work in process (111000*5%) 5550
Finished goods 21090
Cost of goods sold 84360
Manufacturing overhead 111000

4) Net operating income increase by (5550+21090) = 26640

Add a comment
Know the answer?
Add Answer to:
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,332,000 of total manufacturing overhead for an estimated activity level of 74,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $880,000 of total manufacturing overhead for an estimated activity level of 88,000 machine-hours. 3 During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job order costing...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse....

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $765,000 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,520,000 of total manufacturing overhead for an estimated activity level of 76,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buldup of furniture in the company's warehouse. The company's...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $592,000 of total manufacturing overhead for an estimated activity level of 74,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a bulldup of furniture in the company's warehouse. The company's...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $651,000 of total manufacturing overhead for an estimated activity level of 93,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's...

  • 4 answers reguired Luzadis Company makes furniture using the latest automated technology. The company uses a...

    4 answers reguired Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,040,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1.615,000 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's...

  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and a...

    Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $651,000 of total manufacturing overhead for an estimated activity level of 93,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT