Managerial Accounting, Student Value Edition (5th Edition)

5th Edition

ISBN: 9780134067179

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Textbook Question

Chapter 3, Problem 3.26AE

Record manufacturing overhead (Learning Objectives 5 & 6)

Refer to the data in Exercise 3-25A. Smith’s accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $364,000, not the $480,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was $610,000.

Requirements

1. Prepare the journal entry (entries) to record manufacturing overhead costs incurred.
2. Prepare the journal entry to record the manufacturing overhead allocated to jobs in production.
3. Use a T-account to determine whether manufacturing overhead is underallocated or overallocated and by how much.
4. Record the entry to close out the underallocated or overallocated manufacturing overhead.
5. What is the adjusted ending balance of Cost of Goods Sold?

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Chapter 3, Problem 3.25AE

Chapter 3, Problem 3.27AE

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Chapter 3 Solutions

Managerial Accounting, Student Value Edition (5th Edition)

Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QC Ch. 3 - Prob. 9QC Ch. 3 - Prob. 10QC

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