1.Centore Inc. has provided the following data for the month of June. There were
ID: 2605518 • Letter: 1
Question
1.Centore Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Manufacturing overhead for the month was underapplied by $3,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
The work in process inventory at the end of June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:
2.
Bosshart Inc. has provided the following data for the month of May. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Manufacturing overhead for the month was underapplied by $6,000.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include credit or debit to Work in Process of how much?
Work In Process Finished Goods Cost of Goods Sold Total Direct materials $ 650 $ 7,590 $ 24,860 $ 33,100 Direct labor 2,180 20,700 67,800 90,680 Manufacturing overhead applied 930 7,130 22,940 31,000 Total $ 3,760 $ 35,420 $ 115,600 $ 154,780Explanation / Answer
Answer
Total
Work in Progress
Finished Goods
Cost of Goods Sold
Manufacturing overhead applied (A)
31000
930
7130
22940
% of total (B)
100%
3%
23%
74%
Underapplied overhead
3000
[3000 x 3%] 90
[3000 x 23%] 690
[3000 x 74%] 2220
Work in Progress
Finished Goods
Cost of Goods Sold
Total
Direct Materials
650
7590
24860
33100
Direct Labor
2180
20700
67800
90680
Manufacturing Overhead applied
930
7130
22940
31000
Underapplied
90
690
2220
3000
TOTAL
3850
36110
117820
157780
-----The Answer is the work in progress inventory at the end of May after allocation of Underapplied overhead would be $3850
Working ------------------
Total
Work in Progress
Finished Goods
Cost of Goods Sold
Manufacturing overhead applied
88000
9680
9680
68640
% of total
100%
11%
11%
78%
Underapplied overhead
6000
660
660
4680
Work in Progress
Finished Goods
Cost of Goods Sold
Total
Direct Materials
10670
12000
81120
103790
Direct Labor
11630
15000
101400
128030
Manufacturing Overhead applied
9680
9680
68640
88000
Underapplied
660
660
4680
6000
TOTAL
32640
37340
255840
325820
---Since the overhead were UNDER applied, the journal entry would be:
Work In progress Dr $660
manufacturing Overhead $660
Hence, the answer is Work in Progress will be DEBITED by $660
Total
Work in Progress
Finished Goods
Cost of Goods Sold
Manufacturing overhead applied (A)
31000
930
7130
22940
% of total (B)
100%
3%
23%
74%
Underapplied overhead
3000
[3000 x 3%] 90
[3000 x 23%] 690
[3000 x 74%] 2220
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