Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1a. Calculate the amount of over or underapplied overhead 1b. Prepare the journal entry to dispose the overhead balance assuming that it had been a
1a. Calculate the amount of over or underapplied overhead
d. Applied overhead to jobs based on the number of direct labor hours required: e. Recorded the following actual manufacturing costs: During January, the company had the following transactions: a. Purchased $10,000 worth of raw materials on account. b. Issued the following materials into production: c. Recorded salaries and wages payable as follows: f. Recorded the following general and administrative costs: g. Sold job 101, which is recorded in Finished Goods Inventory at a cost of $30,000, for $55,000. h. Completed job 102 but did not sell it; Job 103 is still in process at year-end Ind ivid ual lob Cost Shoets (subsidiary ledgers to WiP) Beq: Balance - Direct Materials - Direct labor - Applied OH Total Mfc, Cost Cost of Goods Sold Selling, General, and Administrative Expenses Sampson Company uses a job order cost system with overhead applied to products based on direct labor hours. Based on previous history, the company estimated its total overhead for the coming year to be $720,000 and its total direct labor hours to be 24,000. On january 1,2021 , the general ledger of Sampson company revealed that it had one job in process (job 102) for which it had incurred a total cost of $15,000. job 101 had been finished the previous month for a total cost of $30,000 but was not yet sold. The company had a contract for job 103 but had not started working on it yet. Other balances in Raw Materials Inventory and other assets, liabilities, and stockholders' equity accounts are summarized below 1b. Prepare the journal entry to dispose the overhead balance assuming that it had been a year end blanace instead of month end
1c. Post the effect to a general ledger T-Account
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started