Question

Machine-hours 61,000
Manufacturing overhead cost $ 1,324,000
Inventories at year-end:
Raw materials $ 16,000
Work in process (includes overhead applied of $115,900) $ 188,000
Finished goods (includes overhead applied of $208,620) $ 338,400
Cost of goods sold (includes overhead applied of $834,480) $ 1,353,600

The predetermined overhead rate was based on a cost formula that estimates $1,368,000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours.

Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.

What is the journal entry amount?

I have the entries ( COGS & Finished Goods).

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