General Journal question On March 31,2017, Alpha Corporation recorded the follow
ID: 2534093 • Letter: G
Question
General Journal question
On March 31,2017, Alpha Corporation recorded the following factory overhead costs incurred: Factory Manager Salary Factory Utilities Machinery Deprecation Machinery Repairs Factory Insurance (prepaid) S6,000 2,500 10,000 2.000 1,000 The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that S21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entries, without explanations, for the: (round any final dollar answers to the nearest whole dollar): 1. to record the factorv overhead costs 2. the allocation of factory overhead to Job Order A-2 3. the allocation of factory overhead to Job Order A-3 4. the adjusting entry to dispose of any over or under application of factory overhead 3/31/17 3/31/17 3/31/17 3/31/17Explanation / Answer
factory overhead costs Factory Manager salary 6,000 Factory utilities 2,500 Machinery Depreciation 10,000 Machinery Repairs 2,000 Factory insurance (prepaid) 1,000 Total factory overhead costs incurred 21,500 overhead rate = estimated Moh/Estimated DLH's 21,000/10,000 2.1 overhead applied = actual direct labor hrs * overhead rate A-2 A-3 total direct labor hours 7,100 3,000 overhead rate 2.1 2.1 total overhead applied 14910 6300 21210 Journal Entries TR Accounting titles & Explanations Debit Credit 1) Factory overhead costs 21,500 Salary payable 6,000 Accounts payable 4,500 Accumulated depreciation 10,000 prepaid insurance 1,000 2) work in process -A1 14910 Factory overhead 14910 3) work in process-A2 6300 factory overhead 6300 4) cost of goods sold 290 factory overhead 290
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