Question 1 (18 points) n March 31, 2017, Alpha Corporation recorded the followin

Question

Question 1 (18 points) n March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred Factory Manager Salary Factory Utilities Machinery Deprecation $7,000 3,500 10,000 2,500 1,500 Machinery Repairs Factory Insurance (prepaid) The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $23,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,500 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entries, without explanations, for the: (round any final dollar answers to the nearest whole dollar): 1. to record the factory overhead costs 2. the allocation of factory overhead to Job Order A-2 3. the allocation of factory overhead to Job Order A-3 4. the adjusting entry to dispose of any over or under application of factory overhead

Explanation / Answer

DR CR 3/31/2017 Factory Overhead 24500 Salaries Payable 7000 Utilities Payable 3500 Accumulated Depreciation 10000 Repairs Payable 2500 Prepaid Insurance 1500 3/31/2017 Work in Process - Job A-2 17250 Work in Process - Job A-3 8050 Factory Overhead 25300 3/31/2017 Factory Overhead 800 Cost of Goods Sold 800 Factory Overhead Rate =23000/10000= 2.3 Per DLH Factory Overhead Allocated Work in Process - Job A-2 7500*2.3 17250 Work in Process - Job A-3 3500*2.3 8050 Factory overhead Overapplied =25300-24500 800

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