Starlight Glassware Company has the following standards and flexible-budget data. ...
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Accounting
Starlight Glassware Company has the following standards and flexible-budget data.
Standard variable-overhead rate
$
6.00
per direct-labor hour
Standard quantity of direct labor
3
hours per unit of output
Budgeted fixed overhead
$
120,000
Budgeted output
20,000
units
Actual results for February are as follows:
Actual output
18,000
units
Actual variable overhead
$
423,000
Actual fixed overhead
$
115,000
Actual direct labor
65,000
hours
Required:
Prepare journal entries for the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. To record applied production overhead
Debit: Work-in-process inventory ???
Credit: Production Overhead ???
3. To close underapplied overhead into cost of goods sold:
Debit: Cost of goods sold??
Credit: Production overhead???
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