Question

3. Kyle Corporation had the following account balances at the end of this year Direct materials inventory Work in process Finished goods Manufacturing overhead control Cost of goods sold $ 2,000 1,400 900 123 credit 1,020 a. Assuming that over- or underapplied overhead is written off to cost of goods sold, prepare the appropriate journal entry. (If no entry is required for a particular transaction, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record entry to write off over or underapplied overhead to cost of goods sold. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal b. Compute the adjusted balance in the cost of goods sold account. Adjusted balance

Answer 1

As there is Credit balance of Manufacturing Overhead Control Account it means 77 Manufacturing Overhads are Overapplied. 78 79 80 a. Assuming that over- or underapplied overhead is written off to cost of goods sold, prepare the appropriate journal entry. 81 Credit Transaction General Journal Debit 82 1 Manufacturing Overhead Control 83 123 Cost of Goods Sold 84 123 (To write off overapplied overheads to cost of goods Sold) 85 86 87 b Compute the adjusted balance in the Cost of goods sold account. 88 Unadjusted Balance of Cost of Goods Sold Less Overapplied Manufacturing Overheads Adjusted Balance of Cost of Goods Sold 89 1020 90 -123 91 897 92 93 94 95 96