Aspen Company estimates its manufacturing overhead to be $608,400 and its direct labor costs to...
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Accounting
Aspen Company estimates its manufacturing overhead to be $608,400 and its direct labor costs to be $507,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $272,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $340,000. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $68,000. Actual manufacturing overhead for year 2 was $802,700. Manufacturing overhead is applied on the basis of direct labor costs.
Required:
Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Transaction Index :
Record the allocation of over- or underapplied overhead.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Applied manufacturing overhead
Work-in-process inventory
Finished goods inventory
Cost of good sold
+
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