Use the following information to answer questions. (Algo)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
Use the following information to answer questions. (Algo)
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security
uses a job order costing system. Overhead is applied using a predetermined overhead rate of 5
labor cost.
Beginning
of period
$ 45,000
9,600
68,000
End of
Period
$ 45,000
19,000
33,500
Inventories
Raw materials
Work in process
Finished goods
Cost incurred for the period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used
Indirect labor used
Other overhead costs
$ 178,000
250,000
9,000
57,500
115,500
Exercise 15-15 (Algo) Recording actual and applied overhead LO P3
1. Incurred other actual overhead costs (all paid in Cash).
2. Applied overhead to work in process.
Prepare journal entries for the above transactions for the period.
View transaction list
Journal entry
worksheet
A
В
Record the entry for other actual overhead costs incurred (all paid in Cash).
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dc9d2dd-35ab-4c84-a611-40f810db3ab6%2Fd1409094-8b53-4419-8028-e58ba0aaeed2%2Fej4buu_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information to answer questions. (Algo)
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security
uses a job order costing system. Overhead is applied using a predetermined overhead rate of 5
labor cost.
Beginning
of period
$ 45,000
9,600
68,000
End of
Period
$ 45,000
19,000
33,500
Inventories
Raw materials
Work in process
Finished goods
Cost incurred for the period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used
Indirect labor used
Other overhead costs
$ 178,000
250,000
9,000
57,500
115,500
Exercise 15-15 (Algo) Recording actual and applied overhead LO P3
1. Incurred other actual overhead costs (all paid in Cash).
2. Applied overhead to work in process.
Prepare journal entries for the above transactions for the period.
View transaction list
Journal entry
worksheet
A
В
Record the entry for other actual overhead costs incurred (all paid in Cash).
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry
worksheet
A
Record the entry to apply overhead to work in process.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
2
Record entry
Clear entry
View general journal
Expert Solution
Step 1
Applied overhead seems to be a sort of direct overhead charge that is documented using the cost-accounting approach. A predetermined fee charged to a particular manufacturing operation, good supplied, or division within a firm is known as applied overhead. Cost accounting is used by businesses to determine the costs involved with the production.
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