At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead c for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360,000 76,000 51,000 Total actual direct materials cost $487,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. es 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Factory Overhead

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Chapter1: Financial Statements And Business Decisions
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At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions:
overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead co
for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows.
Jobs completed and sold
Jobs in finished goods inventory
Jobs in work in process inventory
$360,000
76,000
51,000
Total actual direct materials cost
$487,000
1. Determine the predetermined overhead rate.
2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and
determine whether overhead is overapplied or underapplied.
es
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and
determine whether overhead is overapplied or underapplied.
Factory Overhead
< Prev
5 of 7 #
Next >
G
18
Transcribed Image Text:At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $840,000, and direct materials costs, $600,000. At year-end, the company's records show that actual overhead co for the year are $691,300. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory $360,000 76,000 51,000 Total actual direct materials cost $487,000 1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. es 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Factory Overhead < Prev 5 of 7 # Next > G 18
1. Determine the predetermined overhead rate.
2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate a
determine whether overhead is overapplied or underapplied.
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and
determine whether overhead is overapplied or underapplied.
Factory Overhead
Actual overhead
691,300
681,800 Applied overhead
9.500
< Req 1
< Prev
Req 4 >
5 of 7
Next >
O
(2)
Transcribed Image Text:1. Determine the predetermined overhead rate. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate a determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Factory Overhead Actual overhead 691,300 681,800 Applied overhead 9.500 < Req 1 < Prev Req 4 > 5 of 7 Next > O (2)
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