value: 0.75 points Southern Rim Parts estimates its manufacturing overhead to be

Question

value: 0.75 points Southern Rim Parts estimates its manufacturing overhead to be $485,000 and its direct labor costs to be $970,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $56,000 for Job 301, $81,000 for Job 302, and $130,000 for Job 303. For the year actual manufacturing overhead was $444,000 and total direct labor cost was $843,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory Finished goods inventory Cost of goods sold $ 37,935 88,515 295,050 Prepare an entry to prorate the under- or overapplied overhead. (If no entry is required for a transactionlevent, select "No joumal entry required" in the first account field.) Required: View transaction list

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Applied overhead 421500 Work in process inventory 2025 Finished goods inventory 4725 Cost of goods sold 15750      Manufacturing overhead control 444000

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.