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Safari File Edit View History Bookmarks Window Help 90% E Thu 4:42 PM mybusinesscourse.com 0 GOFROGS.COM TCU Horned Frogs Official Athletic Site- Baseball Homework B Ch 3 Managerial BusinessCourse Menu Meredith Milholland- ACCT20653:080-Intro to Accounting-TTH ASSIGNMENT NAVIGATION QUESTION 20 Partialy correct Mark 0.47 out af 1.00 P Flag question Financial: Ch 1: Financial Accounting and Business 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). 6 7 8 9 10 Financial: Ch 2: Processing Accounting Information 1112 13 14 15 Financial: Ch 3: Accrual Basis of Business Accounting 21 22 23 Applied Manufacturing Overhead Work in process 67,200 x Finished goods Cost of goods sold Finish attempt... Financial: Ch 4: Understanding Financial 4800 X 336,000 x Financial: Ch 13: Analysis and Interpretation of Financial Statements Total: $ 448,000 x Managerial: Ch 1: Overview of Managerial Accounting Over-applied manufacturing overhead 8X b. Prepare a journal entry to record the disposition of the over-applied manufacturing overhead. Managerial: Ch 2: Managerial Accounting Concepts and Cost Flows General Journal Description Debit Credit Manufacturing overhead # 28,000 X 122

Explanation / Answer

Overhead applied = (60000+40000+300000)*120% = 480000

Overapplied overhead = 480000-420000 = 60000

a) Applied manufacturing overhead :

Overapplied overhead = 480000-420000 = 60000

Journal entry of disposition :

Work in process (60000*120%) 72000 Finished goods (40000*120%) 48000 Cost of goods sold (300000*120%) 360000 Total applied overhead 480000

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