Question

Check my w The following information is taken from the accounts of Foster Corp. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 408,000 445,000 Bal. 37,000 Work in Progress inces Bal. (c) 795,000 112,000 217,000 122.000 445,000 (b) Bal. 101,000 Finished Goods Bal. 170,500 795,000 (d) 851.500 Bal. 114,000 Cost of Goods Sold 051.500

Answer 1

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Forster Corp
Answer 1
Entry a is the actual manufacturing overhead incurred during the year.
Entry b is the manufacturing overhead applied to products and transferred to work in process during the year.
Entry c is the cost of goods finished and transferred to finished goods inventory during the year.
Entry d is the cost of goods sold during the year.
Answer 2
Calculation of overhead Over applied
Factory overhead amount applied	445,000.00	See E
Actual factory overhead	408,000.00	F
Over applied	37,000.00	G=E-F
If over applied overhead is allocated in the ratio of overhead applied to work in process, finished goods and cost of good sold.
	Work in process	Finished goods	Cost of good sold	Total
Amount	35,600.00	44,500.00	364,900.00	445,000.00
% of allocation	8.00%	10.00%	82.00%	100.00%
Over applied overhead	2,960.00	3,700.00	30,340.00	37,000.00
	Journal Entry
Account	Debit $	Credit $
Manufacturing overhead	37,000.00
Work in process		2,960.00
Finished goods		3,700.00
Cost of good sold		30,340.00