Antoine Machining estimated its manufacturing overhead to be $302,560 and its direct materials costs to...
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Accounting
Antoine Machining estimated its manufacturing overhead to be $302,560 and its direct materials costs to be $488,000 in Year 1. Three of the jobs that Antoine Machining worked on in Year 1 had actual direct materials costs of $20,700 for Job AM002, $75,900 for Job AM005, and $96,600 for Job AM008. For Year 1, actual manufacturing overhead was $316,800 and total direct materials cost was $730,000. Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates.
Overhead applied in each of the inventory accounts is as follows:
Work-in-process inventory
$ 27,156
Finished goods inventory
85,994
Cost of goods sold
339,450
Required:
Prepare an entry to allocate the under- or overapplied overhead.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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