Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing 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 the year, 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. View transaction list

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its
manufacturing 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 the
year, 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.
View transaction list
Journal entry worksheet
A
Record the allocation of over- or underapplied overhead.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Finished Goods Inventory
12,623
Cost of Goods Sold
8,492
Work-in-Process Inventory
1,836
Manufacturing Overhead Applied
22,951
Record entry
Clear entry
View general journal
>
Transcribed Image Text:Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing 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 the year, 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. View transaction list Journal entry worksheet A Record the allocation of over- or underapplied overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Finished Goods Inventory 12,623 Cost of Goods Sold 8,492 Work-in-Process Inventory 1,836 Manufacturing Overhead Applied 22,951 Record entry Clear entry View general journal >
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