Selected accounts from the accounting records of Bergez Manufacturing Company (who uses a job order cost system) are shown below. Goods in Process Inventory Finished Goods Inventory Debits Credits Debits Credits Beg. Bal. 100,800 Beg. Bal. 118,200 D.M. 113,120 324,800 301,000 D.L. 151,200 O.H. 90,720F. G. 324,800 End. Bal. 131,040 End. Bal. 142,000 Factory Overhead 93,24090,720 The company's overhead rate is 60% of direct labor cost. Using the information shown above, answer the following items.What is the amount of the over/under applied overhead for the period?Identify as over or underapplied.

Given information: Actual factory overhead $93,240 Predetermined factory overhead $90,720

Answered: Selected accounts from the 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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Selected accounts from the accounting records of Bergez Manufacturing Company (who uses a job order cost system) are shown below.

Goods in Process Inventory		Finished Goods Inventory
Debits	Credits		Debits	Credits
Beg. Bal. 100,800			Beg. Bal. 118,200
D.M. 113,120			324,800	301,000
D.L. 151,200
O.H. 90,720	F. G. 324,800
End. Bal. 131,040			End. Bal. 142,000


Factory Overhead
93,240	90,720

The company's overhead rate is 60% of direct labor cost. Using the information shown above, answer the following items.

What is the amount of the over/under applied overhead for the period?
Identify as over or underapplied.

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