Rundle Company and Rooney Company both apply overhead to the Work in Process Inventory account using direct labor hom following information is available for both companies for the year. Rundle Company $139,150 Rooney Company $262,250 25,000 11,000 Actual manufacturing overhead Actual direct labor hours 21,000 Underapplied overhead Overapplied overhead $ 21,500 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period company, assuming the amounts are Immaterial. ces Complete this question by entering your answers in the tabs below. Required A Required B Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Rundle Company: Manufacturing Overhead Cost of Goods Sold Adjusting Entry for Rooney Company: Manufacturing Overhead Cost of Goods Sold < Required A Required >
Rundle Company and Rooney Company both apply overhead to the Work in Process Inventory account using direct labor hom following information is available for both companies for the year. Rundle Company $139,150 Rooney Company $262,250 25,000 11,000 Actual manufacturing overhead Actual direct labor hours 21,000 Underapplied overhead Overapplied overhead $ 21,500 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period company, assuming the amounts are Immaterial. ces Complete this question by entering your answers in the tabs below. Required A Required B Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Rundle Company: Manufacturing Overhead Cost of Goods Sold Adjusting Entry for Rooney Company: Manufacturing Overhead Cost of Goods Sold < Required A Required >
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter26: Manufacturing Accounting: The Job Order Cost System
Section: Chapter Questions
Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...
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