The company applies overhead to products at a rate of 50 percent of direct labor cost. Fairfield Company applies manufacturing overhead to products at a predetermined rate of $66 per direct labor hour. Its actualmanufacturing costs for the most recent period are summarized here:TotalItemDescriptionCost$ 85,00014,000Direct materialsUsed on Jobs 101 and 102Used on multiple jobs930 hours @ $33 per hourIndirect materialsHourly labor wages$ 7,26011,22012,210220 hours for Job 101340 hours for Job 102 =370 hours for Job 103 =30,690Factory supervisionProduction engineerFactory janitorial workSelling, general, and administrative salariesOther manufacturing overhead costs (factory rent, insurance,depreciation, etc.)Other selling, general, and administrative costs (office rent,insurance, depreciation, etc.)4,1505,6001,6008,6006,0004,7001. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete.NoTransactionGeneral JournalDebitCredit1Work in Process Inventory9,400aRaw Materials Inventory9,400bWork in Process Inventory9,400 XManufacturing Overhead1,500 XRaw Materials Inventory10,900Work in Process Inventory12,300 XCManufacturing Overhead2,700 XWages Payable15,000

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Description: The company applies overhead to products at a rate of 50 percent of direct labor cost. Fairfield Company applies manufacturing overhead to products at a predetermined rate of $66 per direct labor hour. Its actualmanufacturing costs for the most recen

Step 1 Manufacturing overhead is all indirect costs incurred during the production process.

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The company applies overhead to products at a rate of 50 percent of direct labor cost.

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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