Question

Actual indirect materials costs Actual indirect labor costs Other overhead costs Overhead applied DET Concert Promotions $11,600 55,800 16,700 92,000 Valle Home Builders $ 6,000 46,800 48,800 96, 100 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. Factory OH Storm GJ Storm Factory OH Valle GJ Valle Determine whether overhead is overapplied or underapplied. Factory Overhead-Storm

Answer 1

i) Factory OH Storm:

Factory Overhead-Storm
Indirect Materials	$ 11,600
Indirect Labor	$ 55,800	Overhead applied	$ 92,000
Other overhead costs	$ 16,700
COGS (Over applied)	$ 7,900

ii) GJ Storm:

Transaction	General Journal	Debit	Credit
1	Manufacturing Overhead	$ 7,900
	Cost of goods sold		$ 7,900
	[To record manufacturing overhead over applied]

iii) Factory OH Valle:

Factory Overhead - Valle
Indirect Materials	$ 6,000
Indirect Labor	$ 46,800	Overhead applied	$ 96,100
Other overhead costs	$ 48,800	COGS (under applied)	$ 5,500

iv) GJ Valle:

Transaction	General Journal	Debit	Credit
1	Cost of goods sold	$ 5,500
	Manufacturing Overhead		$ 5,500
	[To record manufacturing overhead under applied]