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Record the allocation of over- or underapplied overhead.

Record the allocation of over- or underapplied overhead.

FINANCIAL ACCOUNTING
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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Journal entry worksheet < A Record the allocation of over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal 7
Transcribed Image Text:Journal entry worksheet < A Record the allocation of over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal 7
Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $425,620 and its direct labor costs to be $818,500. 2M worked on three jobs for the year. Job 2M-1, which was sold during Year 2, had actual direct labor costs of $748,000. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $503,200. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $108,800. Actual manufacturing overhead for Year 2 was $742,800. 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 7 ✓
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 $425,620 and its direct labor costs to be $818,500. 2M worked on three jobs for the year. Job 2M-1, which was sold during Year 2, had actual direct labor costs of $748,000. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $503,200. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $108,800. Actual manufacturing overhead for Year 2 was $742,800. 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 7 ✓
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