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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