Aspen Company estimates its manufacturing overhead to be $512,000 and its direct labor costs to be $512,000 for year 2. Aspen worked three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $220,995. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $433,805. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $163,700. The actual manufacturing overhead for year 2 was $827,400. Manufacturing overhead is applied on the basis of direct labor costs. Required: Prepare an entry to allocate over-or underapplied overhead to Work in Process, Finished Goods, and Cost of Goods Sold.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
icon
Related questions
Question
100%

Please provide answer these general accounting question

Aspen Company estimates its manufacturing overhead to be $512,000
and its direct labor costs to be $512,000 for year 2. Aspen worked three
jobs for the year. Job 2-1, which was sold during year 2, had actual direct
labor costs of $220,995. Job 2-2, which was completed, but not sold at
the end of the year, had actual direct labor costs of $433,805. Job 2-3,
which is still in work-in-process inventory, had actual direct labor costs
of $163,700. The actual manufacturing overhead for year 2 was $827,400.
Manufacturing overhead is applied on the basis of direct labor costs.
Required:
Prepare an entry to allocate over-or underapplied overhead to Work in
Process, Finished Goods, and Cost of Goods Sold.
Transcribed Image Text:Aspen Company estimates its manufacturing overhead to be $512,000 and its direct labor costs to be $512,000 for year 2. Aspen worked three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $220,995. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $433,805. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $163,700. The actual manufacturing overhead for year 2 was $827,400. Manufacturing overhead is applied on the basis of direct labor costs. Required: Prepare an entry to allocate over-or underapplied overhead to Work in Process, Finished Goods, and Cost of Goods Sold.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning