Machine-hours 61,000Manufacturing overhead cost $ 1,324,000Inventories at year-end:Raw materials $ 16,000Work in process (includes overhead applied of $115,900) $ 188,000Finished goods (includes overhead applied of $208,620) $ 338,400Cost of goods sold (includes overhead applied of $834,480) $ 1,353,600The predetermined overhead rate was based on a cost formula that estimates $1,368,000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours.Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.What is the journal entry amount?I have the entries ( COGS & Finished Goods).
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Machine-hours 61,000
Manufacturing
Inventories at year-end:
Raw materials $ 16,000
Work in process (includes overhead applied of $115,900) $ 188,000
Finished goods (includes overhead applied of $208,620) $ 338,400
Cost of goods sold (includes overhead applied of $834,480) $ 1,353,600
The predetermined overhead rate was based on a cost formula that estimates $1,368,000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours.
Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate
What is the journal entry amount?
I have the entries ( COGS & Finished Goods).
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