1
answer
0
watching
224
views
28 Sep 2019
Exercise 7-28 Prorate Over- or Underapplied Overhead (LO 7-3)Aspen Company estimates its manufacturing overhead to be $516,000and its direct labor costs to be $516,000 for year 2. Aspen workedon three jobs for the year. Job 2-1, which was sold during year 2,had actual direct labor costs of $205,125. Job 2-2, which wascompleted, but not sold at the end of the year, had actual directlabor costs of $467,685. Job 2-3, which is still in work-in-processinventory, had actual direct labor costs of $147,690. Actualmanufacturing overhead for year 2 was $828,200. Manufacturingoverhead is applied on the basis of direct labor costs.
Required: Prepare an entry to allocateover- or underapplied overhead to Work in Process, Finished Goodsand Cost of Goods Sold.
Exercise 7-28 Prorate Over- or Underapplied Overhead (LO 7-3)Aspen Company estimates its manufacturing overhead to be $516,000and its direct labor costs to be $516,000 for year 2. Aspen workedon three jobs for the year. Job 2-1, which was sold during year 2,had actual direct labor costs of $205,125. Job 2-2, which wascompleted, but not sold at the end of the year, had actual directlabor costs of $467,685. Job 2-3, which is still in work-in-processinventory, had actual direct labor costs of $147,690. Actualmanufacturing overhead for year 2 was $828,200. Manufacturingoverhead is applied on the basis of direct labor costs.
Required: |
Prepare an entry to allocateover- or underapplied overhead to Work in Process, Finished Goodsand Cost of Goods Sold. |
Keith LeannonLv2
28 Sep 2019