**Yarra Fabrication Manufacturing Overhead Analysis**Yarra Fabrication estimates its manufacturing overhead for year 1 will be $2,336,000. It also predicts direct material costs to be $1,460,000. However, the actual manufacturing overhead for the year amounted to $2,475,000 and the actual direct material costs were $1,625,000. Overhead is allocated to jobs using predetermined rates based on direct materials cost. For year 1, the total applied overhead was $2,600,000.**Inventory Account Balances:**- Work-in-process inventory: $492,250- Finished goods inventory: $1,163,500- Cost of goods sold: $7,294,250**Task:**Prepare a journal entry to allocate the over- or underapplied overhead. If no entry is necessary, indicate "No journal entry required" for the transaction/event.**Journal Entry Required:**| No | Transaction | General Journal | Debit | Credit ||----|--------------------------------|-------------------------------|-----------|--------|| A | 1 | Applied manufacturing overhead | $7,294,250| || | | Work-in-process inventory | | |*Buttons for further actions:*- View transaction list- View journal entry worksheetUse these buttons to explore detailed transaction lists or to generate a worksheet for further analysis.

Name: **Yarra Fabrication Manufacturing Overhead Analysis**Yarra Fabricatio
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Description: **Yarra Fabrication Manufacturing Overhead Analysis**Yarra Fabrication estimates its manufacturing overhead for year 1 will be $2,336,000. It also predicts direct material costs to be $1,460,000. However, the actual manufacturing overhead for the ye

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Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that di will amount to $1,460,000. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materi $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. T overhead for the year was $2,600,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory Finished goods inventory Cost of goods sold $ 492,250 $1,163,500 $7,294,250 Required: Prepare an entry to allocate the over- or underapplied overhead. (If no entry is required for a transaction/event, s entry required" in the first account field.) View transaction list View journal entry worksheet

Yarra Fabrication estimates that its manufacturing overhead will be $2,336,000 in year 1. It further estimates that di will amount to $1,460,000. Actual manufacturing overhead costs for the year were $2,475,000. Actual direct materi $1,625,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. T overhead for the year was $2,600,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory Finished goods inventory Cost of goods sold $ 492,250 $1,163,500 $7,294,250 Required: Prepare an entry to allocate the over- or underapplied overhead. (If no entry is required for a transaction/event, s entry required" in the first account field.) View transaction list View journal entry worksheet

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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