Answer:
Explanation:
The journal entry is shown below:
1. Under Actual costing:
Work in progress inventory Ac Dr $364,000
To Manufacturing overhead A/c $364,000
(Being manufacturing overhead is added to the work in progress inventory)
2. Under Normal costing,
First we have to compute the predetermined overhead rate which is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated machine hours)
= $336,000 ÷ 20,000 hours
= $16.8
Now we have to find the actual overhead which equal to
= Actual machine hours × predetermined overhead rate
= 11,000 hours × $16.8
= $184,800
Work in progress inventory Ac Dr $184,800
To Manufacturing overhead A/c $184,800
(Being manufacturing overhead is added to the work in progress inventory)
