In: Accounting
Applied vs. Actual Manufacturing Overhead
Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $420,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $60,000, $40,000, and $300,000, respectively, of direct labor incurred during the current year.
a. Determine the over-applied manufacturing overhead at year-end (assume it is significant).
Applied Manufacturing Overhead | |
---|---|
Work in process | $Answer |
Finished goods | Answer |
Cost of goods sold | Answer |
Total: | $Answer |
Over-applied manufacturing overhead $Answer_____
b. Prepare a journal entry to record the disposition of the over-applied manufacturing overhead.
General Journal | ||
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Description | Debit | Credit |
Answer | Answer | Answer |
Answer | Answer | Answer |
Answer | Answer | Answer |
Answer | Answer | Answer |