Hw.138. Since Helen is unsure if this amount would be considered material or not, she decides to do the work for both options so that shecan bring it to her supervisor and ask for additional clarification regarding materiality. (Round any rates or proportions to fourdecimal places, e.g. 0.2510 and final answers to 2 decimal places, e.g. 5,275.25.)1. Show the journal entry if the MOH difference is to be written off entirely in the current period. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)Account Titles and ExplanationAccount Titles and ExplanationDebit2. Show the calculations and journal entry needed if the difference is to be prorated to the appropriate inventory and costaccounts based on their ending balances. (Credit account titles are automatically indented when the amount is entered. Do not indentmanually. List all debit entries before credit entries.)Account Titles and ExplanationDebitCredit3. Show the calculations and journal entry needed if the difference is to be prorated to the appropriate inventory and costaccounts based on the amount of applied MOH in each account. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. List all debit entries before credit entries.)DebitCreditCredit It was the end of the fiscal year, and Helen was evaluating her company's MOH. Since her company uses normal costing and appliesoverhead based on direct labor hours, she anticipated a difference in the amount of MOH that was applied compared to the amountthat was actually incurred. Indeed, there was a difference-and it seemed huge! Here is what she saw within the MOH account, as wellas detail from the beginning of the year when the budgeted MOH rate was determined:Budgeted MOH costBudgeted direct labor hoursActual MOH costActual direct labor hours$57,75035,000 hours$61,00033,000 hoursHelen is aware of the following company policy regarding any MOH difference: "any MOH difference that is deemed "immaterial'should be written off in the current period; any MOH difference that was deemed 'material' should be prorated to the appropriateaccounts so as to better approximate actual costs." Helen also has the following additional detail regarding the inventory accounts.End. Bal.RM Inventory$6,500WIP Inventory5,900FG Inventory16,520Cost of Goods Sold 95,580Applied MOHWithin End. Bal.$3,6006,30035,100While she does not yet have a clear understanding of what amount might be considered "material, 3,050 knows she has to firstcalculate the MOH balance.

Name: Hw.138. Since Helen is unsure if this amount would be considered mater
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Hw.138. Since Helen is unsure if this amount would be considered material or not, she decides to do the work for both options so that shecan bring it to her supervisor and ask for additional clarification regarding materiality. (Round any rates or pr