EXERCISE
Assume that the following accounts represent data from the Blackett Corporation's accounting
records. Blackett uses the materials inventory for direct materials only with a separate supplies account
for indirect materials.
Write the missing amounts represented by the letters ag next to the letter in each Taccount.
c
d
f
b Determine the company's predetermined overhead rate, based on direct material cost. Be sure to
express your answer as a rate.
c Assume that Blackett desires to allocate overhead variances to Cost of Goods Sold, Work in Process
and Finished Goods, based upon ending balances in each account.
Compute the overhead variance specify overunderapplied
Based on ending account balances, determine the allocations to the accounts indicated above
and provide a joumal entry below that clears the overhead account.
JOURNAL
