Question

Required information

[The following information applies to the questions displayed below.]

The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour

Actual direct-labor cost: 80,000 hours at $17.50 per hour

Budgeted manufacturing overhead: $997,500

Actual selling and administrative expenses: 434,000

3. Prepare a journal entry to close out the Manufacturing Overhead account into Cost of Goods Sold. (Round intermediate calculations to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	1	Manufacturing overheadselected answer correct	60,000selected answer incorrect	not attempted
		Cost of goods soldselected answer correct	not attempted	60,000

Required information

[The following information applies to the questions displayed below.]

The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour

Actual direct-labor cost: 80,000 hours at $17.50 per hour

Budgeted manufacturing overhead: $997,500

Actual selling and administrative expenses: 434,000

Actual manufacturing overhead:
Depreciation	$	231,000
Property taxes		20,000
Indirect labor		81,000
Supervisory salaries		201,000
Utilities		58,000
Insurance		31,000
Rental of space		302,000
Indirect material (see data below)		80,000
Indirect material:
Beginning inventory, January 1		48,000
Purchases during the year		94,000
Ending inventory, December 31		62,000

2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)

this is the first part of the question

Answer 1

1)	Pre-determined OH rate = 997500/70000 =	$            14.25	per DLH
2)	Overhead applied = 80000*14.25 =	$   11,40,000
	Actual overhead:
	Depreciation	$      2,31,000
	Property taxes	$         20,000
	Indirect labor	$         81,000
	Supervisory salaries	$      2,01,000
	Utilities	$         58,000
	Insurance	$         31,000
	Rental of space	$      3,02,000
	Indirect material	$         80,000
	Total actual overhead	$   10,04,000
	Overhead overapplied = 1140000-1004000 =	$      1,36,000
3)	Manufacturing overhead	$      1,36,000
	Cost of goods sold		$      1,36,000