Question

​Company's Manufacturing Overhead account is given below. Use this information to prepare the journal entry to adjust for overallocated or underallocated overhead.
Manufacturing Overhead
148,000 147,000

Answer 1

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