Applied vs. Actual Manufacturing Overhead
Sloan Manufacturing Corporation applies manufacturing overheadon the basis of 120% of direct labor cost. An analysis of therelated accounts and job order cost sheet indicates that during theyear total manufacturing overhead incurred was $420,000 and that atyear-end Work in Process Inventory, Finished Goods Inventory, andCost of Goods Sold included $60,000, $40,000, and $300,000,respectively, of direct labor incurred during the current year.
a. Determine the over-applied manufacturing overhead at year-end(assume it is significant).
| Applied Manufacturing Overhead |
|---|
| Work in process | $Answer |
| Finished goods | Answer |
| Cost of goods sold | Answer |
| Total: | $Answer |
Over-applied manufacturing overhead $Answer_____
b. Prepare a journal entry to record the disposition of theover-applied manufacturing overhead.
| General Journal |
|---|
| Description | Debit | Credit |
|---|
| Answer | Answer | Answer |
| Answer | Answer | Answer |
| Answer | Answer | Answer |
| Answer | Answer | Answer |
