Question

Actual indirect materials costs Actual indirect labor costs Other overhead costs Overhead applied Storm Concert Promotions $12,300 55,900 16,300 91,900 Valle Home Builders $ 7,200 46,700 49,500 98,700 Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Home Builders Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Valle Factory OH GJ Storm Factory OH Storm Valle GJ Valle Determine whether overhead is overapplied or underapplied. Factory Overhead-Storm

Answer 1

Storm Concert Promotions:

Factory Overhead
Indirect Material	12300	91900	Applied Overhead
Indirect Labor	55900
Other Overhead	16300
		7400	Overapplied overhead

Since account has credit balance, which means factory overhead is overapplied.

Account Titles	Debit	Credit
Factory Overhead	7400
Cost of Goods Sold		7400

Valle Home Builders

Factory Overhead
Indirect Material	7200	98700	Applied Overhead
Indirect Labor	46700
Other Overhead	49500
	4700		Underapplied overhead

Since account has debit balance, which means factory overhead is underapplied.

Account Titles	Debit	Credit
Cost of Goods Sold	4700
Factory Overhead		4700