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15. Suppose, on the other hand, that the status of the Factory Overhead account

ID: 2501924 • Letter: 1

Question

15. Suppose, on the other hand, that the status of the Factory Overhead account is as follows at the end of the year

Factory Overhead

Actual

Applied

105,000

106,000


16. Was the factory overhead underapplied or overapplied?
17. What entry would be made to close the Factory Overhead account?

18. What entry is made when the goods get finished? (See entry g)

19.What two entries are made when goods get sold? (See entries h and i)

20.If period costs, such as office salaries and sales salaries are incurred, how would they be recorded? (See entry j)

21.If a job order costing system is used for a professional service business, would a finished goods account be used?

Actual

Applied

105,000

106,000

Explanation / Answer

Answer:16 The factory overhead overapplied 1,000. because Applied Overhead > Actual overhead.

Answer:17 Factory overhead A/C Dr. $ 1,000

                   To Cost of goods sold A/C    $ 1,000

Answer:18 Finished goodsA/C Dr. $ 10,250

                    To Work in process A/C            $10,250

Answer:19 Account receivable A/C Dr. $ 34,000

                     To Sales A/c                                 $34,000

          Cost of goods sold A/C Dr. $ 20,000

                    To Finished goods A/C $ 20,000

Answer:20 Sales salaries expense A/C Dr. $ 2,000

                 Office salaries expense A/C Dr. $ 1,500

                         To Salaries payable A/C $ 3,500

Answer:21 No

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