Cambridge Manufacturing Company applies manufacturing overhead on the basis of m

Question

Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $290,000 and machine hours to be 14,500. Actual manufacturing overhead and machine hours were s$330,000 and 15,500, respectively Required 1. & 2. Prepare the journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the actual manufacturing overhead cost incurred. Record the application of manufacturing overhead to production 2 3 Record the transfer of manufacturing overhead account balance to cost of goods sold. Credit Note :·journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Manufacturing overhead 330000 Account payable 330000 (To record actual manufacturing overhead) Work in process a/c (290000/14500)*15500 310000 Manufacturing overhead 310000 (To record applied manufacturing overhead) Cost of goods sold a/c 20000 Manufacturing overhead a/c 20000 (To record transfer of manufacturing overhead account to cost of goods sold)

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