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Strauss Corporation uses normal costing in connection with its job costing system. Beginning and ending balances...

Strauss Corporation uses normal costing in connection with its job costing system. Beginning and ending balances for the month of December are as follows:

       Account             Beginning Balance - December 1st              Ending Balance - December 31st
       Direct Materials                         $ 1,200                                                             $ 7,600
       Work in Process                        $ 5,800                                                             $ 8,100
       Finished Goods                         $ 3,500                                                             $ 18,500

The following additional information is available:
a. Accounts payable account shows a credit for the month in the amount of $65,400.
b. Cost of goods manufactured for the period was $225,000.
c. The Overhead Control account shows a debit balance of $100,000 before adjustment.
d. The company uses normal costing and applies overhead at the rate of 120% of direct-labor cost.

1) Compute the total amount of materials requisitioned into production for the period.

2) Conversion costs for the period totaled:

3) Applied overhead for the period was:

4) Normal cost of goods sold for the period is:

5) Actual overhead incurred during the period was:

6) Indicate the mis-applied overhead for period, including BOTH the amount and direction.

7) Using the most theoretically correct manner based on the information given, the journal entry to dispose of under or overapplied overhead would be:

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1) Compute the total amount of materials requisitioned into production for the period.
Beginning Direct Material $         1,200
Add: Purchase (Credit for the month in Payable) $       65,400
Less: Ending Inventory $        -7,600
Material Requisitioned $       59,000
2) Conversion costs for the period totaled:
Cost of Goods Manufactured $ 225,000
Less:Material Used $ -59,000
Less: Beginning Work In process $    -5,800
Add: Ending Work in Process $      8,100
Conversion Cost $ 168,300
3) Applied overhead for the period was:
Applied Overhead $   91,800
(168300/220*120)
4) Normal cost of goods sold for the period is:
Cost of Good Manufactured $ 225,000
Add: Beginning Finished Goods $      3,500
Less: Ending Finished Goods $ -18,500
Cost of Goods Sold $ 210,000
5) Actual overhead incurred during the period was:
Since Overhead balance was debit balance of 100000 before adjustments,
Actual overhead are $ 100,000
6) Indicate the mis-applied overhead for period, including BOTH the amount and direction.
Actual Overhead $ 100,000
Applied Overhead $   91,800
Under Applied Overhead $      8,200
7. Jounral Entries
Cost of Goods Sold $      8,200
Manufacturing Overhead $         8,200

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