In its first year of operation, Oriole Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, March 31, overhead was over-applied by $3,400. It has been decided this over-applied overhead is material at the end of the year and the amount should be allocated among work in process 13%, finished goods 26%, and the rest to the cost of goods sold. Prepare the adjusting entry to close out the over-applied overhead. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit

In its first year of operation, Oriole Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, March 31, overhead was over-applied by $3,400. It has been decided this over-applied overhead is material at the end of the year and the amount should be allocated among work in process 13%, finished goods 26%, and the rest to the cost of goods sold. Prepare the adjusting entry to close out the over-applied overhead. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit

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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