Question

Closing Manufacturing Overhead: Two Approaches. Olympia Company incurred actual manufacturing overhead costs of $630,000 during the year ended December 31, 2012. A total of $570,000 in overhead was applied to jobs. At December 31, 2012, work-in-process inventory totals $200,000, and finished goods inventory totals $400,000. Cost of goods sold before adjustments totals $1,400,000 for the year.

1. Is overhead underapplied or overapplied?
2. Create the journal entry to close the manufacturing overhead account, assuming the balance is immaterial.
3. Create the journal entry to close the manufacturing overhead account, assuming the amount is material.
#1		Manufacturing Overhead
		Debit		Credit
			-	-
		Balance	-
		Overhead is:
#2
	Cost of Goods Sold	60,000
	Manufacturing Overhead		60,000
#3
	Work in Process
	Finished Goods
	Cost of Goods Sold
	Manufacturing Overhead		60,000

WIP	200,000
F. Goods	400,000
COGS	1,400,000

Answer 1

cnt.本630,000 Overhead aft lied to delu t+ 530,000 ( dince. 570,000くも639,ooo)