Question

Storm Concert Promotions			Valle Home Builders
Actual indirect materials costs	$	12,400		$	6,800
Actual indirect labor costs		56,500			46,000
Other overhead costs		16,300			48,700
Overhead applied		91,500			96,600

Storm Concert Promotions

Determine whether overhead is overapplied or underapplied.
Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Valle Home Builders

Determine whether overhead is overapplied or underapplied.
Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Complete this question by entering your answers in the tabs below.

• Factory OH Storm
• GJ Storm
• Factory OH Valle
• GJ Valle

Determine whether overhead is overapplied or underapplied.
-Factory OH Storm

Factory Overhead-Storm
Indirect materials	12,400	91,500	Applied overhead
Indirect labor	56,500
Other overhead costs	16,300
		6,300	Overapplied overhead

• GJ Storm

Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

No	Transaction	General Journal	Debit	Credit
A	1	Cost of goods sold	19,300
		Factory overhead		19,300

• Factory OH Valle

Determine whether overhead is overapplied or underapplied.

Factory Overhead-Valle
Indirect materials			Applied overhead
Indirect labor
Other overhead costs
Underapplied overhead

• GJ Valle

Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

No	Transaction	General Journal	Debit	Credit
A	1	Cost of goods sold
		Factory overhead

Answer 1