Aspen Company estimates its manufacturing overhead to be $631,250 and its direct labor costs to be...

Aspen Company estimates its manufacturing overhead to be $631,250 and its direct labor costs to be $505,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $195,600. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $326,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $130,400. Actual manufacturing overhead for year 2 was $801,900. Manufacturing overhead is applied on the basis of direct labor costs.

Required:

Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the allocation of over- or underapplied overhead.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

Solutions

Expert Solution

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

ekkarill92 answered 3 months ago

Next > < Previous

Related Solutions

Aspen Company estimates its manufacturing overhead to be $1,121,000 and its direct labor costs to be...

Aspen Company estimates its manufacturing overhead to be $1,121,000 and its direct labor costs to be $590,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $178,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $303,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $128,000. Actual...

Aspen Company estimates its manufacturing overhead to be $625,000 and its direct labor costs to be...

Aspen Company estimates its manufacturing overhead to be $625,000 and its direct labor costs to be $500,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $195,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $325,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $130,000. Actual...

Southern Rim Parts estimates its manufacturing overhead to be $318,000 and its direct labor costs to...

Southern Rim Parts estimates its manufacturing overhead to be $318,000 and its direct labor costs to be $1,060,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $65,000 for Job 301, $90,000 for Job 302, and $175,000 for Job 303. For the year, actual manufacturing overhead was $399,000 and total direct labor cost was $834,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....

Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to...

Southern Rim Parts estimates its manufacturing overhead to be $418,500 and its direct labor costs to be $930,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $52,000 for Job 301, $77,000 for Job 302, and $110,000 for Job 303. For the year, actual manufacturing overhead was $464,000 and total direct labor cost was $847,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....

2. Southern Rim Parts estimates its manufacturing overhead to be $360,500 and its direct labor costs to...

2. Southern Rim Parts estimates its manufacturing overhead to be $360,500 and its direct labor costs to be $1,030,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $62,000 for Job 301, $87,000 for Job 302, and $160,000 for Job 303. For the year, actual manufacturing overhead was $414,000 and total direct labor cost was $837,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....

Hamilton company applies manufacturing overhead costs to product based on direct labor hours. the company estimates...

Hamilton company applies manufacturing overhead costs to product based on direct labor hours. the company estimates manufacturing overhead cots for the year to be 280000 and direct labor hours to be 20000. actual overhead and actual direct labor hours for the year were 335000 and 25000 hour respectively required 1. compute over or underapplied overhead 2a. which accounts will be affected by the over- or underapplied manufacturing overhead ? 2b. will the accounts be increased or decreased to abjust for...

The Littlefield Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The...

The Littlefield Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are required per unit of product. For August, the company budgeted to work 360,000 direct labor-hours and to incur the following total manufacturing overhead costs: Total fixed overhead costs $475,200 Total variable overhead costs $396,000 During August, the company completed 28,000 units of product, worked 344,000 direct labor-hours, and incurred the following total manufacturing overhead costs:...

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for...

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $280,000 and actual overhead costs were $220,000. At the end of the year, manufacturing overhead was: 1. Overapplied by $20,000. 2. Underapplied by $20,000. 3. Overapplied by $4,000. 4. Underapplied by $4,000.

Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 13 Variable manufacturing overhead...

Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 13 Variable manufacturing overhead $ 2 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 90,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $58 per unit. Assume...

Conversion costs are A. direct materials plus direct labor. B. direct materials plus manufacturing overhead. C....

Conversion costs are A. direct materials plus direct labor. B. direct materials plus manufacturing overhead. C. indirect materials plus indirect labor. D. direct labor plus manufacturing overhead.

Subjects