### Aspen Company Manufacturing Overhead AllocationAspen Company estimates its manufacturing overhead for year 2 to be $635,000, with direct labor costs projected at $508,000. The company undertook three jobs during the year:- **Job 2-1**: Sold during year 2 with actual direct labor costs totaling $326,600.- **Job 2-2**: Completed but not sold by year-end, with actual direct labor costs of $195,960.- **Job 2-3**: Remaining in work-in-process inventory, actual direct labor costs were $130,640.The actual manufacturing overhead incurred for year 2 was $803,100. Overhead is applied based on direct labor costs.#### Required Task:Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods, and Cost of Goods Sold. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.---#### Journal Entry WorksheetInstructions:- Record the allocation of over- or underapplied overhead.- Note: Enter debits before credits.| Transaction | General Journal | Debit | Credit ||-------------|-----------------|-------|--------|| 1 | | | || | | | || | | | || | | | || | | | || | | | |This worksheet is used to organize and record the necessary journal entries to adjust overhead application discrepancies for accounting purposes.

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Description: ### Aspen Company Manufacturing Overhead AllocationAspen Company estimates its manufacturing overhead for year 2 to be $635,000, with direct labor costs projected at $508,000. The company undertook three jobs during the year:- **Job 2-1**: Sold duri

Overhead rate =Estimated manufacturing overheadEstimated direct labour cost=$635000$508000=125% of…

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Aspen Company estimates its manufacturing overhead to be $635,000 and its direct labor costs to be $508,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $326,600. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $195,960. Job 2-3, which is still in work-in- process inventory, had actual direct labor costs of $130,640. Actual manufacturing overhead for year 2 was $803,100. 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. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Aspen Company estimates its manufacturing overhead to be $635,000 and its direct labor costs to be $508,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $326,600. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $195,960. Job 2-3, which is still in work-in- process inventory, had actual direct labor costs of $130,640. Actual manufacturing overhead for year 2 was $803,100. 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. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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