Exercise 7-35 (Static) Prorate Over- or Underapplied Overhead (LO 7-3) Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 f Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: Work-in-process inventory Finished goods inventory Cost of goods sold Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No A $33,810 $ 270,480 $ 1,386,210 Transaction 1 Answer is not complete. General Journal Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead Applied 0.00 ✪ Debit 390 3,120 15,990 Credit 19,500
Exercise 7-35 (Static) Prorate Over- or Underapplied Overhead (LO 7-3) Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 f Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows: Work-in-process inventory Finished goods inventory Cost of goods sold Required: Prepare an entry to allocate the over- or underapplied overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No A $33,810 $ 270,480 $ 1,386,210 Transaction 1 Answer is not complete. General Journal Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead Applied 0.00 ✪ Debit 390 3,120 15,990 Credit 19,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
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Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
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Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Exercise 7-35 (Static) Prorate Over- or Underapplied Overhead (LO 7-3)
Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will
amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for
Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000.
Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using
predetermined rates.
The amount of overhead applied in each of the inventory accounts at the end of Year 1 is as follows:
Work-in-process inventory
Finished goods inventory
Cost of goods sold
Required:
Prepare an entry to allocate the over- or underapplied overhead.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
A
$ 33,810
$ 270,480
$ 1,386,210
Transaction
1
Answer is not complete.
General Journal
Work-in-Process Inventory
Finished Goods Inventory
Cost of Goods Sold
Manufacturing Overhead Applied
0000
Debit
390
3,120
15,990
Credit
19,500
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