Answer:
<u>Over Applied Overhead = $ 4000</u>
Actual Manufacturing Overhead = $45,000
Manufacturing Overhead Applied = $ 49,000
Explanation:
Job 101 Job 102 Job 103
Total Direct materials $ 19,200 $ 14,400 $ 9,600 $ 43,200
Direct labor $ 28,800 $ 11,200 $ 9,600 $ 49,600
Machine hours 1,000 hrs 4,000 hrs 2,000 hrs 7,000 hours
<u>Manufacturing overhead $ 7000 $ 28,000 14,000 </u>
<u>Total $ 55,000 53,600 33,200</u>
Actual overhead costs recorded during the first month of operations totaled $45,000.
<u>Journal Entries </u>
<u>Sr. No Particulars Debit Credit</u>
Job 102 Finished Goods 53,600
Work In Process 53,600
A journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.
Job 101 Sales 60,000
Cost Of Goods Sold 60,000
Journal entries to recognize the sales revenue and cost of goods sold for Job 101.
Job 101 Cost of Goods Sold 55,000
Finished Goods Inventory 55,000
Manufacturing Overhead Applied = $ 7000 + $ 28,000+14,000 = $ 49,000
Job 101 = 1000/60,000 * $ 420,000= $ 7000
Job 102 = 4000/60,000 * $ 420,000= $ 28000
Job 103 = 2000/60,000 * $ 420,000= $ 14000
Actual Manufacturing Overhead = $45,000
<u>Over Applied Overhead = $ 4000</u>
Manufacturing Overhead Accounts $ 4000 debit
Cost of Goods Sold $ 4000 Credit
Entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.
(Entry to reduce the amount of Over applied Overhead)
