Caplin Incorporated had the following selected account balances at the end of 2018:
Work in Process |
$400,000 |
Finished Goods |
300,000 |
Cost of Goods Sold |
500,000 |
Factory Overhead (over-applied) |
36,000 |
Amount of Factory Overhead Applied in 2018 |
600,000 |
Required:
a) | Account titles & Explanations | Debit | Credit | |||||
Work in process | 600,000 | |||||||
Factory overhead | 600,000 | |||||||
b) | Actual overhead for the year | |||||||
overhead applied | 600,000 | |||||||
less overhead overapplied | 36,000 | |||||||
Actual overhead for the year | 564,000 | answer | ||||||
c) | Account titles & Explanations | Debit | Credit | |||||
Factory overhead | 36,000 | |||||||
cost of goods sold | 36,000 | |||||||
d) | Ending balance in cost of goods sold | |||||||
cost of goods sold -unadjusted | 500,000 | |||||||
less overhead overapplied | 36,000 | |||||||
Ending balance in cost of goods sold | 464,000 | answer | ||||||
Caplin Incorporated had the following selected account balances at the end of 2018: Work in Process...
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