Net Income will be __ (greater,lesser) if the (overapplied, underapplied)
1) Calculate the under applied or overappled Overhead : | 2) Record the journal entry for under / over applied overhead of COGS | ||||||||
Manfacturing Overhead | $ 719,000 | Date | Accounts title and explaination | Debit | Credit | ||||
Applied Overhead | $ 621,000 | Cost of goods sold | $ 98,000 | ||||||
To Manfacturing overheads | $ 98,000 | ||||||||
Under applied overhead | $ 98,000 | ||||||||
(To record the transfer of under applied oh to cogs) | |||||||||
Note : | |||||||||
Applied overhead : | |||||||||
Applied overhead in WIP | $ 62,100 | 3) Record the journal entry for proportional allocation of under or over applied OH | |||||||
Applied overhead in Finished goods | $ 105,570 | to WIP,FG and COGS | |||||||
Applied OH in COGS | $ 453,330 | ||||||||
Date | Accounts title and explaination | Debit | Credit | ||||||
Applied Overhead | $ 621,000 | Work in process | 9800 | ||||||
98000*62100/621000 | |||||||||
Finished goods | 16660 | ||||||||
98000*105570/621000 | |||||||||
Cost of goods sold | 71540 | ||||||||
98000*453330/621000 | |||||||||
To Manfacturing overheads | 98000 | ||||||||
(To record the under or over applied oh transferred to Wip,FG, and COGS) | |||||||||
4) The net operating profit will be increased to the extent of 26460(9800+16660) | |||||||||
if the under applied overhead is allocated to Wip , FG and COGS | |||||||||
rather than being closed to COGS | |||||||||
Net Income will be __ (greater,lesser) if the (overapplied, underapplied) Luzadis Company makes furniture using the...
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 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 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...
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead [LO3-4] 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...
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...
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead (LO3 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 $1,152,000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back...
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead [LO3-4] 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. During the year, a large quantity of furniture on the market resulted in cutting back...
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead [LO3-4] 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...
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead [LO3- 4] 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 $560,000 of total manufacturing overhead for an estimated activity level of 70,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting...
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead (LO3- 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 $980,000 of total manufacturing overhead for an estimated activity level of 98.000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back...