Group Quiz Matt Co.\'s actual overhead cost for the month ended March 31 was $78
ID: 2523633 • Letter: G
Question
Group Quiz Matt Co.'s actual overhead cost for the month ended March 31 was $78,000 Matt's overhead rate was 50% of direct labor cost. Information pertaining to Matt's inventories and production for the month of March is as follows: Beginning inventories, March 1: Direct materials Work in process Finished goods Direct materials used 20,000 40,000 102,000 110,000 $160,000 Direct labor cost Ending inventories, March 31: Direct materials Work in process Finished goods 26,000 36,000 105,000 a. Compute the amount of overhead applied b. Determine the amount of mis-applied overhead for the month. c. Determine the Cost of goods manufactured for the month. d. Determine the Cost of goods sold for the month. e. Prepare the journal entry for the disposition of mis-applied overhead to Cost of goods soldExplanation / Answer
a) Overhead applied = 160000*50% = 80000
b) Over applied overhead = 80000-78000 = 2000
c) Cost of goods manufactured = 110000+160000+80000+40000-36000 = 354000
d) Cost of goods sold = 102000+354000-105000 = 351000
e) Journal entry :
Date accounts & explanation debit credit Manufacturing overhead 2000 Cost of goods sold 2000 (To record over applied)Related Questions
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