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Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,348,800. a. Determine the total factory overhead amount applied. b. Compute the over-or underapplied amount for the year. C. Journalize the entry to transfer the over-or underapplied factory overhead to the cost of goods sold.

Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,348,800. a. Determine the total factory overhead amount applied. b. Compute the over-or underapplied amount for the year. C. Journalize the entry to transfer the over-or underapplied factory overhead to the cost of goods sold.

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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Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,348,800. a. Determine the total factory overhead amount applied. b. Compute the over-or underapplied amount for the year. C. Journalize the entry to transfer the over-or underapplied factory overhead to the cost of goods sold.
Transcribed Image Text:Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,348,800. a. Determine the total factory overhead amount applied. b. Compute the over-or underapplied amount for the year. C. Journalize the entry to transfer the over-or underapplied factory overhead to the cost of goods sold.
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