Question

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 (a) 392,000 (b) 425,000 Bal. 33, 000 Work in Progress Bal. 775,000 108,000 213,000 118,000 425,000 (b) Bal. 89,000 Finished Goods Bal. (c) 833, 500 164, 500 775,000 (d) Bal. 106,000 Cost of Goods Sold (d) 833, 500 The overhead applied to production during the year is distributed among the ending balances in the accounts as follows: Work in Process, ending Finished Goods, ending Cost of Goods Sold $ 34,000 42, 500 348, 500 Overhead applied $425,000 For example, of the $89,000 ending balance in Work in Process, $34,000 was overhead applied during the year.

Answer 1

1) Identify

a	Actual manufacturing overhead cost for the year
b	Overhead applied for work in process
c	Cost of goods manufactured for the year
d	Cost of goods sold

2) Adjusting entry

Date	account and explanation	Debit	Credit
	Manufacturing overhead	33000
	Work in process (33000*8%)		2640
	Finished goods		3300
	Cost of goods sold		27060