Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $424,060 and its direct labor costs to be $815,500. 2M worked on three jobs for the year. Job 2M-1. which was sold during Year 2, had actual direct labor costs of $632,500. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $425,500, Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $92,000. Actual manufacturing overhead for Year 2 was $632.400. 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. No A Transaction 1 Answer is not complete. General Journal Cost of Goods Sold Finished Goods Inventory Work-in-Process Inventory Manufacturing Overhead Applied 3000 Debit 18,920 12,728 2,752 Credit 34,400

Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $424,060 and its direct labor costs to be $815,500. 2M worked on three jobs for the year. Job 2M-1. which was sold during Year 2, had actual direct labor costs of $632,500. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $425,500, Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $92,000. Actual manufacturing overhead for Year 2 was $632.400. 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. No A Transaction 1 Answer is not complete. General Journal Cost of Goods Sold Finished Goods Inventory Work-in-Process Inventory Manufacturing Overhead Applied 3000 Debit 18,920 12,728 2,752 Credit 34,400

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Description: Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates itsmanufacturing overhead to be $424,060 and its direct labor costs to be $815,500. 2M worked on three jobs for the year. Job 2M-1

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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