Question

Weygandt, Financial and Managerial, 3e Assignment Gradebook ORION INTRODUCTION TO ACCOUNTING (ACCT 2001/2 Downloadable eTextbook nt CALCULATOR FULL SCREEN BACK Brief Exercise 15-10 At December 31, balances in Manufacturing Overhead are Waterway Company-debit $1,490, Crane Company-credit $1,020 Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. (Credit account titles are automatically indented when amount i entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Waterway Company Dec. 31 Cost of Goods Sold Manufacturing Overhead Crane Company Dec. 31 Manufacturing Overhead Cost of Goods Sold Click if you would like to Show Work for this question: Ore She Work SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts of used W 14 111111 MacBook Air

Answer 1

Journal entry for Waterways company:

Credit Debit $1,490 Date Waterways company Cost of goods sold Manufacturing overheads (To adjust the underapplied overheads) $1,490

A debit balance in manufacturing overheads account means overheads are underapplied. Accordingly, cost of goods sold account is debited.

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Journal entry for Crane company:

Credit Debit $1,020 Date Crane company Manufacturing overheads Cost of goods sold (To adjust the overapplied overheads) $1,020

A credit balance in manufacturing overheads account means overheads are overapplied. Accordingly, cost of goods sold account is credited.