Question

E2-19 (Algo) Preparing Journal Entries [LO 2-S1) Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $175,680. Estimated direct labor cost was $452,010 for 18,300 hours. Actual costs for the most recent month are summarized here: Total Cost $45,202 Item Description Direct labor (1,830 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Selling expenses 2,440 3,320 3,250 4,880 5,740 1,140 1,720 4,190 5,370 Required: 1. 2. & 3-a. Prepare the journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the application of manufacturing overhead to production.

Answer 1

Q1 Estimated overhead cost Estimated direct labour hours Predetermined overhead rate Actual direct labour hour used Manufactuirng Overhead $ 1,75,680 $ 18,300 $ 10 175680/18300 $ 1,830 $ 17,568 1830*9.6 ਉਹੈ | ਉਹੈ $ 17,568 Work In process Manufacturing overhead $ 17,568 $ 22,490 Q2 Manufactuiing Overhead Wages Payable Raw materials Accumulated depreciation Cash Q3 Manufacturing overhead costs applied Actual manufacturing overhead costs incurred Under applied manufacturing overhead costs $ 2,440 $ 3,320 $ 5,740 $ 10,990 3250+4880+1140+1720 $ $ $ 17,568 22,490 -4,922 $ $ 4,922 Cost of Good sold Manufactuiing Overhead $ 4,922 Increases the cost of goods because it is debited to cost of good sold account