Yarra Fabrication estimates that its manufacturing overhead will be $2,297,600 in year 1. It further estimates that direct material costs will amount to $1,436,000. Actual manufacturing overhead costs for the year were $2,445,000. Actual direct materials costs were $1,595,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,552,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory $ 475,750 Finished goods inventory $ 1,124,500 Cost of goods sold $ 7,049,750 Required: Prepare an entry to allocate the over- or underapplied overhead.
Yarra Fabrication estimates that its manufacturing overhead will be $2,297,600 in year 1. It further estimates that direct material costs will amount to $1,436,000. Actual manufacturing overhead costs for the year were $2,445,000. Actual direct materials costs were $1,595,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,552,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory $ 475,750 Finished goods inventory $ 1,124,500 Cost of goods sold $ 7,049,750 Required: Prepare an entry to allocate the over- or underapplied overhead.
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 11PB: When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would...
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Yarra Fabrication estimates that its manufacturing overhead will be $2,297,600 in year 1. It further estimates that direct material costs will amount to $1,436,000. Actual manufacturing overhead costs for the year were $2,445,000. Actual direct materials costs were $1,595,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,552,000 The balance in each of the inventory accounts is as follows. Work-in-process inventory $ 475,750 Finished goods inventory $ 1,124,500 Cost of goods sold $ 7,049,750 Required:
Prepare an entry to allocate the over- or underapplied overhead.
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