Linzee Liners estimates that its manufacturing overhead will be $1,748,000 in Year 1. It further estimates that direct labor costs will amount to $760,000. During March, Linzee worked on four jobs with actual direct labor costs of $36,000 for Job 0301, $23,500 for Job 0302, $33,000 for Job 0303, and $17,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,735,000. Actual direct labor costs for the year were $745,000. 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. View transaction list Journal entry worksheet A $ 34,270 $ 274,160 $ 1,405,070 Record an entry to allocate the over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Linzee Liners estimates that its manufacturing overhead will be $1,748,000 in Year 1. It further estimates that direct labor costs will
amount to $760,000. During March, Linzee worked on four jobs with actual direct labor costs of $36,000 for Job 0301, $23,500 for
Job 0302, $33,000 for Job 0303, and $17,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,735,000.
Actual direct labor costs for the year were $745,000. 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.
View transaction list
$ 34,270
$ 274,160
$ 1,405,070
Journal entry worksheet
< A
Record an entry to allocate the over- or underapplied overhead.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
Transcribed Image Text:Linzee Liners estimates that its manufacturing overhead will be $1,748,000 in Year 1. It further estimates that direct labor costs will amount to $760,000. During March, Linzee worked on four jobs with actual direct labor costs of $36,000 for Job 0301, $23,500 for Job 0302, $33,000 for Job 0303, and $17,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,735,000. Actual direct labor costs for the year were $745,000. 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. View transaction list $ 34,270 $ 274,160 $ 1,405,070 Journal entry worksheet < A Record an entry to allocate the over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >
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