Question

Capital Corporation has provided the following data for the month of June:

Inventories:                Beginning              Ending

Work in progress       $14000                  $16000

Additional Information:

Direct material used in production        $53000

Direct labor cost                                 $78000

Manufacturing overhead cost incurred (actual)      $45,000
Manufacturing overhead cost applied to work in process   $41,000

1)Prepare a Schedule of Cost of Goods Manufactured in proper form

2)Prepare the journal entry to adjust the variance between applied MOH and actual MOH

.

Answer 1

Schedule of cost of goods manufactured :

Direct material used	53000
Direct labour	78000
Manufacturing overhead applied	41000
Total manufacturing cost	172000
Beginning work in process	14000
Total cost of work in process	186000
Less: Ending work in process	(16000)
Cost of goods manufactured	170000

2)Prepare the journal entry to adjust the variance between applied MOH and actual MOH

Date	accounts & explanation	debit	credit
	Cost of goods sold (45000-41000)	4000
	Manufacturing overhead		4000
	(To record adjust variance of overhead)