Harwood Company uses a Job-order costing system that applies overhead cost to Jobs on the basis of machine-hours. Thecompany's predetermined overhead rate of $260 per machine-hour was based on a cost formula that estimates $260,000of total manufacturing overhead for an estimated activity level of 100,000 machine-hours.Required:1. Assume that during the year the company works only 95,000 machine-hours and Incurs the following costs In theManufacturing Overnead and Work in Process accounts: Compute the amount of overhead cost that would be applied toWork In Process for the year and make the entry In your T-accounts.2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance In yourManufacturing Overhead T-account28. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.Complete this question by entering your answers in the tabs belovw.Req 1Req 2AReq 28Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. (If no entry is requirtransaction/event, select "No journal entry required" in the first account field.)Vlew transaction letJournal entry worksheetRecord the entry to close the balance of the manufacturing overhead accountto COGS account.Note: Enter debits before credits.EventGeneral JoumalDebitCredit1 Harwood Company uses a Job-order costing system that applies overhead cost to Jobs on the basis of machine-hours. The company'spredetermined overhead rate of $2.60 per machine-hour was based on a cost formula that estimates $260,000 of total manufacturingoverhead for an estimated activity level of 100.000 machine-hours.Required:1. Assume that durling the year the company works only 95,000 machine-hours and incurs the following costs In the ManufacturingOverhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work In Process for the yearand make the entry In your T-accounts.2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance In your Manufacturing OverheadT-account.28. Prepare a Journal entry to close the company's underapplied or overappled overhead to Cost of Goods Sold.Complete this question by entering your answers in the tabs belovw.Req 1Req 2AReq 28Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts.Manufacturing OverheadWork in ProcessDebitCreditDebitCredit(Maintenance)41,000(a)(Direct materials)910,000(Indirect materials)(Indirect labor)10,000(Direct labor)110,00080,000(Overhead) (a)(Utilities)47,000(Insurance)9,000(Depreciation)63,000Balance< Req 1Req 2A >

Name: Harwood Company uses a Job-order costing system that applies overhead
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Description: Harwood Company uses a Job-order costing system that applies overhead cost to Jobs on the basis of machine-hours. Thecompany's predetermined overhead rate of $260 per machine-hour was based on a cost formula that estimates $260,000of total manufactu

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Harwood Company uses a Job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $260 per machine-hour was based on a cost formula that estimates $260,00 of total manufacturing overhead for an estimated activity level of 100,000 machine-hours. Required: 1. Assume that during the year the company works only 95.000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work In Process accounts: Compute the amount of overhead cost that would be applied to Work In Process for the year and make the entry in your T-accounts. 2A Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account 28. Prepare a Joumal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Harwood Company uses a Job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $260 per machine-hour was based on a cost formula that estimates $260,00 of total manufacturing overhead for an estimated activity level of 100,000 machine-hours. Required: 1. Assume that during the year the company works only 95.000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work In Process accounts: Compute the amount of overhead cost that would be applied to Work In Process for the year and make the entry in your T-accounts. 2A Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account 28. Prepare a Joumal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

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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