Latta Company provided the following T-accounts for this year. Manufacturing Overhead 486,144 (b) 81,024 Debit (a) Balance Cost of Goods Sold Debit + 662,000 Credit Credit Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied 405,120 Debit $ 24,480 62,880 317,760 $ 405,120 Balance (b) Balance Work in Process 10,880 (c) 298,500 90,500 405,120 51,000 Credit 754,000 Debit Balance (c) Balance Finished Goods 39,000 (d) 754,000 131,000 (d) The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: Credit 662,000
Latta Company provided the following T-accounts for this year. Manufacturing Overhead 486,144 (b) 81,024 Debit (a) Balance Cost of Goods Sold Debit + 662,000 Credit Credit Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied 405,120 Debit $ 24,480 62,880 317,760 $ 405,120 Balance (b) Balance Work in Process 10,880 (c) 298,500 90,500 405,120 51,000 Credit 754,000 Debit Balance (c) Balance Finished Goods 39,000 (d) 754,000 131,000 (d) The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows: Credit 662,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
![8.11
Latta Company provided the following T-accounts for this year.
(a)
Balance
Manufacturing Overhead
486,144 (b)
81,024
Debit
Cost of Goods Sold
Debit
Credit
662,000
Credit
405,120
Entry
(a)
(b)
(c)
(d)
$ 24,480
62,880
317,760
$ 405,120
Debit
Required 1 Required 2 Required 3
Balance
Identify reasons for entries (a) through (d).
(b)
Balance
Work in Process
Reason
10,880 (c)
298,500
90,500
405, 120
51,000
Work in Process, ending
Finished Goods, ending
Cost of Goods Sold
Overhead applied
For example, of the $51,000 ending balance in work in process, $24.480 was applied overhead.
Complete this question by entering your answers in the tabs below.
Credit
754,000
(d)
The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the
year as follows:
Balance
(c)
Balance
Debit
Required:
1. Identify reasons for entries (a) through (d).
2. Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods
Sold. Prepare the necessary journal entry.
Finished Goods
< Prey
39,000 (d)
754,000
131,000
Credit
7 of 8
662,000
www
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd20063b5-09e9-4bb6-9f27-b5f12ca902fe%2F2d31d408-c7ce-404f-8eba-b444e4f74b3f%2F7a38mz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8.11
Latta Company provided the following T-accounts for this year.
(a)
Balance
Manufacturing Overhead
486,144 (b)
81,024
Debit
Cost of Goods Sold
Debit
Credit
662,000
Credit
405,120
Entry
(a)
(b)
(c)
(d)
$ 24,480
62,880
317,760
$ 405,120
Debit
Required 1 Required 2 Required 3
Balance
Identify reasons for entries (a) through (d).
(b)
Balance
Work in Process
Reason
10,880 (c)
298,500
90,500
405, 120
51,000
Work in Process, ending
Finished Goods, ending
Cost of Goods Sold
Overhead applied
For example, of the $51,000 ending balance in work in process, $24.480 was applied overhead.
Complete this question by entering your answers in the tabs below.
Credit
754,000
(d)
The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the
year as follows:
Balance
(c)
Balance
Debit
Required:
1. Identify reasons for entries (a) through (d).
2. Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods
Sold. Prepare the necessary journal entry.
Finished Goods
< Prey
39,000 (d)
754,000
131,000
Credit
7 of 8
662,000
www
4
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