Requirement A
|
General Journal
|
Debit
|
Credit
|
|
Manufacturing overheads
|
$ 20,000.00
|
|
|
Cost of goods sold
|
|
$ 20,000.00
|
|
(Overheads overapplied adjusted)
|
|
|
Requirement B
|
General Journal
|
Debit
|
Credit
|
|
Manufacturing overheads
|
$ 20,000.00
|
|
|
Ending WIP
|
|
$ 3,030.30
|
|
Ending finished goods inventory
|
|
$ 4,848.48
|
|
Cost of goods sold
|
|
$ 12,121.21
|
|
(Overheads overapplied adjusted)
|
|
|
|
Adjustment of Overapplied overheads
using prorate method
|
|
Unadjusted balances
|
Apportionment of Overapplied overheads
|
Adjusted balance
|
|
Ending WIP
|
$ 1,25,000.00
|
$ (3,030.30)*
|
$ 1,21,969.70
|
|
Ending finished goods inventory
|
$ 2,00,000.00
|
$ (4,848.48)
|
$ 1,95,151.52
|
|
Cost of goods sold
|
$ 5,00,000.00
|
$ (12,121.21)
|
$ 4,87,878.79
|
*20000/(125000+200000+500000) x 125000
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