Question

3 Homework 6 You received no credit for this question in the previous attempt Check my work Required information The following information applies to the questions displayed below The following information pertains to Trenton Glass Works for the year just ended Budgeted direct-labor cost: 75.000 hours (practical capacity) at $16 per hour Actual direct-labor cost 80,000 hours at $1750 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 434,000 ing overhead $234,000 Indirect labor ta below beginning inventory, Jarcary Puresases dering the year 4,000 8,000 3. Prepare ‘ journal entry to cose out the Mantacturing Overhead account into Cost of Goods Sold (Round intermediate calculations to 2 decinal places.詍no entry is required for o transactionevent, select no journal entry required. İn th" first account field.) Pre of t3 HI Next > MacBook Pro 3 5 6 8

Answer 1

Account, Titles and Explanation		Debit	Credit
Manufacturing Overhead		$        96,000
Cost of Goods sold			$ 96,000
(Being Manufacturing overhead account closed to Cost of Goods sold)
Workings:
Predetermined overhead rate:	=	Budgeted manufacturing overhead / Budgeted direct labor hours
	=	$9,97,500 / 75,000
	=	$             13.3
Manufacturing overheads applied	=	80,000 hours X $13.3
	=	$ 10,64,000
Actual Manufacturing overheads	=	$2,34,000 + $21,000 + $82,000 + $2,02,000 + $58,000 + $31,000 + $3,01,000 + $39,000
	=	$     9,68,000
Over applied manufacturing overheads	=	$10,64,000 - $9,68,000
	=	$        96,000