Yarra Fabrication estimates that its manufacturing overhead will be $2,310,400 in year 1. It further estimates that direct material costs will amount to $1,444,000. Actual manufacturing overhead costs for the year were $2,455,000. Actual direct materials costs were $1,605,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,568,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory goods inventory nish Cost of goods sold $ 481,250 $1,137,500 $7,131,250 Required: Prepare an entry to allocate the over- or underapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View fronocotie
Yarra Fabrication estimates that its manufacturing overhead will be $2,310,400 in year 1. It further estimates that direct material costs will amount to $1,444,000. Actual manufacturing overhead costs for the year were $2,455,000. Actual direct materials costs were $1,605,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,568,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory goods inventory nish Cost of goods sold $ 481,250 $1,137,500 $7,131,250 Required: Prepare an entry to allocate the over- or underapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View fronocotie
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Yarra Fabrication estimates that its manufacturing overhead will be
$2,310,400 in year 1. It further estimates that direct material costs will
amount to $1,444,000. Actual manufacturing overhead costs for the
year were $2,455,000. Actual direct materials costs were
$1,605,000. Manufacturing overhead is applied to jobs based on
direct materials cost using predetermined rates. The total applied
overhead for the year was $2,568,000
The balance in each of the inventory accounts is as follows.
Work-in-process inventory
Finished goods inventory
Cost of goods sold
$ 481,250
$1,137,500
$7,131,250
Required:
Prepare an entry to allocate the over- or underapplied overhead. (If
no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
View transaction list
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