Answer:
<u>Cost of goods manufactured for November.</u>
Manufacturing Schedule Cost
Beginning Inventory (Job 205) $11,800
Direct materials $26,000
Direct labor costs $21,000
Applied Overheads ($21,000 x 160%) $33,600
Less Ending Inventory (Job 104) ($6,900)
Cost of Goods Manufactured $85,500
<u>Journal entries to record the current month activity.</u>
Debit : Work In Process $80,600
Credit : Direct materials $26,000
Credit : Direct labor costs $21,000
Credit : Applied Overheads ($21,000 x 160%) $33,600
<u>Calculation of amount of over allocated or under allocated manufacturing overhead</u>
Actual Manufacturing Overheads = $32,000
Applied Manufacturing Overheads = $33,600
Therefore, Overheads Over-applied = $1,600
