18, 19 and 20 are based from the following information: At the end of the 20x9 fiscal year, RAVE KAYAK's records show the following unadjusted account balances: Work in process Finished Goods CGS Direct materials 100,000 170,000 360,000 Direct labor 80,000 250,000 600,000 70,000 250,000 440,000 1,400,000 Factory overhead 300,000 720,000 Rave's accountant allocated overhead during the year using a predetermined rate of P 40 per machine hour. At year-end, they computed the actual rate of P 50 per machine hour. The beginning balances of both Work in Process Inventory and Finished Gooods Inventory were zero.
18, 19 and 20 are based from the following information: At the end of the 20x9 fiscal year, RAVE KAYAK's records show the following unadjusted account balances: Work in process Finished Goods CGS Direct materials 100,000 170,000 360,000 Direct labor 80,000 250,000 600,000 70,000 250,000 440,000 1,400,000 Factory overhead 300,000 720,000 Rave's accountant allocated overhead during the year using a predetermined rate of P 40 per machine hour. At year-end, they computed the actual rate of P 50 per machine hour. The beginning balances of both Work in Process Inventory and Finished Gooods Inventory were zero.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:18, 19 and 20 are based from the following information:
At the end of the 20x9 fiscal year, RAVE KAYAK's records show the following unadjusted account balances:
Work in process
Finished Goods
CGS
Direct materials
100,000
170,000
360,000
Direct labor
80,000
250,000
600,000
Factory overhead
70,000
300,000
440,000
250,000
720,000
1,400,000
Rave's accountant allocated overhead during the year using a predetermined rate of P 40 per machine hour.
At year-end, they computed the actual rate of P 50 per machine hour. The beginning balances of both Work in
Process Inventory and Finished Gooods Inventory were zero.
18. Machine hours used in 20x9
19. Overlunderapplied overhead?
20. Record the entry to close over - or underapplied overhead?
DEBIT
CREDIT
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