Question
A carpenter company uses job-order costing. The following is a summary of factory operations: Direct materials purchased on account $125,000.00 Direct materials requisitioned $110,000.00 Direct
A carpenter company uses job-order costing. The following is a summary of factory operations:
Direct materials purchased on account $125,000.00
Direct materials requisitioned $110,000.00
Direct labor costs incurred $256,000.00
Factory Overhead costs incurred (Depreciation Expense only) $150,000.00
Cost of goods completed $515,000.00
Cost of goods sold $$378,000.00
Sales on Account $430,000.00
Factory overhead applied ?
Factory overhead costs are applied at 50% of direct labor costs.
Required: Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.
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