Question

1. Assume that during the year the company works only 81,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts.

2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account.

2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Quiz Help so Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, LO3-4) Harwood Company uses a job order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $3.00 per machine-hour was based on a cost formula that estimates $258,000 of total manufacturing overhead for an estimated activity level of 86,000 machine hours. Required: 1. Assume that during the year the company works only 81,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 28. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below Reg 1 Reg 2A Reg 28 Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. Manufacturing Overhead 27.000 8,600 88,000 42.000 (Direct materiais) (Direct labor) (Overhead) () Work In Process 770,000 90,000 (Maintenance) (Indirect materials) (Indirect labor) (Ulities) Insurance) (Depreciation) Biance 76.000 Reg 2 > Pray of 3 l Next >

Answer 1

Answert Manufacturing overhead. particularg Amount Amount partiecelars Maintenance $ 27000 $243,000 work in process Indirect materiala $ 8600 [81,000 Ⓡ$ 3] Indirect Labor 1$ 88.000 utilities $40,000 Insurance $ 7600 Depreciation $ 76,000 Balance $6,200 $243,000 $243.000 work in process Particulars Amount Amount particulars Direct Materials $770,000 Direct labor $ 96,000 Mancofacturing over $243,000 - head 2A) calculalion of over or under applied overhead:- under applied Mance pfacturing overhead is $6.200 Dale Teredit 2-B) Journal entry particulars - cost of Goods Sold Ale or TO Hanc facturing overhead Being record under applied over head bebit $6,200 $ 6,200