Question

Rieb Incorporated has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work In Process			Finished Goods			Cost of Goods Sold			Total
Direct materials	$	3,870		$	8,950		$	47,470		$	60,290
Direct labor		10,030			24,280			130,210			164,520
Manufacturing overhead applied		6,920			12,110			67,470			86,500
Total	$	20,820		$	45,340		$	245,150		$	311,310

Manufacturing overhead for the month was overapplied by $7,950.

The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

Required:

Provide the journal entry that would record the allocation of underapplied or overapplied among 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.)

Answer 1

	Rieb Incorporated
	Date	General,Journal	Debit	Credit
	September	Manufacturing Overhead	$                  7,950.00
		Work in Process($7950*8%)		$                       636.00
		Finished goods($7950*14%)		$                   1,113.00
		Cost of goods sold($7950*78%)		$                   6,201.00
		(Amount of Manufacturing overhead overapplied allocated to Work in Process,Finished goods and cost of goods sold)
	Formual :
	Work in Process---	(Manufacturing Overhead overapplied*Manufacturing overhead applied to Work in Process)/Total manufacturing overhead applied
	Finished Goods---	(Manufacturing Overhead overapplied*Manufacturing overhead applied to Finished goods)/Total manufacturing overhead applied
	Cost of goods sold	(Manufacturing Overhead overapplied*Manufacturing overhead applied to cost of goods sold)/Total manufacturing overhead applied
		Ratio of allocation
	Work in Process	(6920/86500)	8%
	Finished goods	(12110/86500)	14%
	Cost of goods sold	(67470/86500)	78%