Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates itsmanufacturing overhead to be $421,200 and its direct labor costs to be $810,000. 2M worked on three jobs for the year. Job 2M-1,which was sold during Year 2, had actual direct labor costs of $420,750. Job 2M-2, which was completed but not sold at the end of theyear, had actual direct labor costs of $283,050. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of$61,200. Actual manufacturing overhead for Year 2 was $430,000.Required:Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Answer is not complete.NoTransactionGeneral JournalA1Cost of Goods SoldFinished Goods InventoryWork-in-Process InventoryManufacturing Overhead AppliedManufacturing Overhead ControlDebitCredit430,000

Step 1: Estimated manufacturing overhead costs = $421,200 Estimated direct labor costs = $810,000…

Answered: Marian Manufacturing (2M) applies…

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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