Question

Specifically looking for help with question number 3 and question number 4.

On question 3 there are only eight lines for the journal entry and you must use the correct chart of accounts wording.

On question number 4 the number is incorrect but the drop-down of overapplied is correct.

Instruction Chart of Accounts Calculations Journal Concluding Questions Instructions At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information direct materials cost, $2,750; direct labor cost, $5,355. The average wage for Smith Company employees is $17 per hour. By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year: Equipment lease Depreciation on building $ 6,800 19,340 90,400 Indirect labor Utilities 14,560 Other overhead 41,400 Required: 1. Calculate the overhead rate for the year. 2. Calculate the total cost of Job K456, 3. Prepare the Dec. 31 journal entries to record actual overhead and to apply overhead to production for the year. 4. Is overhead overapplied or underapplied? By how much? 5. Assuming that the normal cost of goods sold for the year is $635,600, what is the adjusted cost of goods sold?

Answer 1

3.

Date	Account	Debit	Credit
31-Dec	Overhead control	$172,500
	Lease payable		$6,800
	Accumulated depreciation		19,340
	Wages payable		90,400
	Utilities payable		14,560
	Other payables		41,400
31-Dec	Work in process ($129,600/13,500*18,100)	$173,760
	Overhead control		$173,760

4. Overhead is overapplied by $1,260 ($173,760-172,500)