Milo & Webster Engine Propulsion Corp. has the following data at the end of the first quarter
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Question:
Milo & Webster Engine Propulsion Corp. has the following data at the end of the first quarter of the current year:
Direct Labor | $1,205,000 |
Direct Material | $1,526,800 |
Actual Fixed Overhead | $1,400,000 |
Actual Variable Overhead | $928,200 |
Applied Overhead – as a % of Direct Labor cost | 168% |
Raw Material Inventory Balance | $83,725 |
Work in Process Balance | $387,540 |
Finished Goods Balance | $91,830 |
Cost of Goods Sold | $1,304,000 |
Milo & Webster Engine Propulsion Corp. utilizes one summary MO account in its single POR calculation (based on DL dollars). The account is comprised of fixed and variable manufacturing overhead elements.
What is the amount of under- or overapplied overhead for the MO account? Complete the GL MO account.
Prepare the necessary journal entry to dispose of under- or overapplied overhead assuming both materiality and non-materiality for the end of the first quarter as required by FASB for reporting compliance?
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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