Answer:
Manufacturing overhead A/c Dr $1,000
To Costs of good sold A/c $1,000
(Being the under allocated overhead is recorded)
Explanation:
The adjusting entries are shown below:
Manufacturing overhead A/c Dr $1,000
To Costs of good sold A/c $1,000
(Being the under allocated overhead is recorded)
The computation is shown below:
= Manufacturing amount - the overhead amount
= $148,000 - $147,000
= $1,000
We simply debited the manufacturing overhead account and credited the costs of goods sold account
