Applied vs Actual Manufacturing Overhead Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120 of direct labor cost An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $588,000 and that at year end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $84,000, $56,000, and $420,000, respectively, of direct labor incurred during the current year a Determine the over applied manufacturing overhead at year end (assume it is significant) Applied Manufacturing Overhead Work in process Answer Finished goods Answer Cost of goods sold Answer Total Answer Over applied manufacturing overhead $Answer b Prepare a journal entry to record the disposition of the over applied manufacturing overhead General Journal Description Debit Credit Answer Cost of goods sold Finished goods inventory Manufacturing overhead Work in process inventory Answer Answer Answer Cost of goods sold Finished goods inventory Manufacturing overhead Work in process inventory Answer Answer Answer Cost of goods sold Finished goods inventory Manufacturing overhead Work in process inventory Answer Answer Answer Cost of goods sold Finished goods inventory Manufacturing overhead Work in process inventory Answer Answer

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Applied vs. Actual Manufacturing Overhead Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An analysis of the related

Applied vs. Actual Manufacturing Overhead

Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $588,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $84,000, $56,000, and $420,000, respectively, of direct labor incurred during the current year.

a. Determine the over-applied manufacturing overhead at year-end (assume it is significant).

Applied Manufacturing Overhead
Work in process	Answer
Finished goods	Answer
Cost of goods sold	Answer
Total:	Answer

Over-applied manufacturing overhead $Answer

b. Prepare a journal entry to record the disposition of the over-applied manufacturing overhead.

General Journal
Description	Debit	Credit
Answer:Cost of goods sold;Finished goods inventory;Manufacturing overhead;Work in process inventory	Answer	Answer
Answer:Cost of goods sold;Finished goods inventory;Manufacturing overhead;Work in process inventory	Answer	Answer
Answer:Cost of goods sold;Finished goods inventory;Manufacturing overhead;Work in process inventory	Answer	Answer
Answer:Cost of goods sold;Finished goods inventory;Manufacturing overhead;Work in process inventory	Answer	Answer