Question

Duck Commander estimates its manufacturing overhead to be $601,200 and its direct labor costs to be...

Duck Commander estimates its manufacturing overhead to be $601,200 and its direct labor costs to be $501,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $203,250. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $406,500. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $67,750. Actual manufacturing overhead for year 2 was $825,200. Manufacturing overhead is applied on the basis of direct labor costs.

  

Required:
Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold.

  
Record the Allocation of over or underapplied overhead

Transaction General Debit Credit

Homework Answers

Answer #1

Predetermine overhead rate = 601200*100/501000 = 120%

Total direct labour cost = 203250+406500+67750 = 677500

Overhead applied = 677500*1.2 = 813000

Actual overhead = 825200

Under applied overhead = 813000-825200 = 12200

Journal entry :

Transaction General Debit credit
Cost of goods sold (12200*30%) 3660
Finished goods (12200*60%) 7320
Work in process (12200*10%) 1220
Manufacturing overhead 12200
(To record under applied overhead)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Aspen Company estimates its manufacturing overhead to be $506,000 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $506,000 and its direct labor costs to be $506,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $244,650. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $407,750. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $163,100. Actual...
Aspen Company estimates its manufacturing overhead to be $615,600 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $615,600 and its direct labor costs to be $513,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $211,575. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $368,550. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $102,375. Actual...
Aspen Company estimates its manufacturing overhead to be $1,271,000 and its direct labor costs to be...
Aspen Company estimates its manufacturing overhead to be $1,271,000 and its direct labor costs to be $620,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $184,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $309,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $134,000. Actual...
Southern Rim Parts estimates its manufacturing overhead to be $282,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $282,000 and its direct labor costs to be $940,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $53,000 for Job 301, $78,000 for Job 302, and $115,000 for Job 303. For the year, actual manufacturing overhead was $459,000 and total direct labor cost was $846,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
Southern Rim Parts estimates its manufacturing overhead to be $436,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $436,000 and its direct labor costs to be $1,090,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $68,000 for Job 301, $93,000 for Job 302, and $190,000 for Job 303. For the year, actual manufacturing overhead was $384,000 and total direct labor cost was $831,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to be $900,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $20,000 for Job 301, $30,000 for Job 302, and $40,000 for Job 303. For the year, actual manufacturing overhead was $479,000 and the total direct labor cost was $850,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined...
Southern Rim Parts estimates its manufacturing overhead to be $282,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $282,000 and its direct labor costs to be $940,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $53,000 for Job 301, $78,000 for Job 302, and $115,000 for Job 303. For the year, actual manufacturing overhead was $459,000 and total direct labor cost was $846,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $495,000 and its direct labor costs to be $900,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $20,000 for Job 301, $30,000 for Job 302, and $40,000 for Job 303. For the year, actual manufacturing overhead was $479,000 and total direct labor cost was $850,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
Southern Rim Parts estimates its manufacturing overhead to be $472,500 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $472,500 and its direct labor costs to be $1,050,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $64,000 for Job 301, $89,000 for Job 302, and $170,000 for Job 303. For the year, actual manufacturing overhead was $404,000 and total direct labor cost was $835,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....
Southern Rim Parts estimates its manufacturing overhead to be $416,000 and its direct labor costs to...
Southern Rim Parts estimates its manufacturing overhead to be $416,000 and its direct labor costs to be $1,040,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $63,000 for Job 301, $88,000 for Job 302, and $165,000 for Job 303. For the year, actual manufacturing overhead was $409,000 and total direct labor cost was $836,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates....