Question
In: Accounting
The following information is taken from the accounts of Latta Company. The entries in the T-accounts...
The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
| Manufacturing Overhead | |||
| (a) | 502,272 | (b) | 418,560 |
| Bal. | 83,712 | ||
| Work in Process | |||
| Bal. | 4,440 | (c) | 782,000 |
| 323,000 | |||
| 94,000 | |||
| (b) | 418,560 | ||
| Bal. | 58,000 | ||
| Finished Goods | |||
| Bal. | 32,000 | (d) | 676,000 |
| (c) | 782,000 | ||
| Bal. | 138,000 | ||
| Cost of Goods Sold | |||
| (d) | 676,000 | ||
The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows:
| Work in Process, ending | $ | 27,840 |
| Finished Goods, ending | 66,240 | |
| Cost of Goods Sold | 324,480 | |
| Overhead applied | $ | 418,560 |
For example, of the $58,000 ending balance in work in process, $27,840 was overhead that had been applied during the year.
Required:
1. Identify reasons for entries (a) through (d).
2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Identify reasons for entries (a) through (d).
|
Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the adjustment of manufacturing overhead account to COGS.
Note: Enter debits before credits.
|
Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)
Journal entry worksheet
Record the allocation of any balance in the manufacturing overhead account to other accounts.
Note: Enter debits before credits.
|
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The following information is taken from the accounts of Latta Company. The entries in the T-accounts...
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Manufacturing
Overhead
(a)
490,752
(b)
408,960
Bal.
81,792
Work in Process
Bal.
9,040
(c)
762,000
305,500
91,500
(b)
408,960
Bal.
53,000
Finished Goods
Bal.
37,000
(d)
666,000
(c)
762,000
Bal.
133,000
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666,000
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