Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the allocation of the underapplied/overapplied overhead to various accounts. Note: Enter debats before credits. Complete this question by entering your answers in the tabs below. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. Noter Enter debits before credita. Luzadis Compary makes fumiture using the latest automated technology. The comparry uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of totai manufacturing overhead for an estimated activity level of 49,000 machine-hours. During the year, a large quaintity of furniture on the market resulted in cutting back production and a buldup of fumiture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year? Required: 1. Compute the underapplied or overappied overhead. 2. Assume that the company closes any underappoed or overapplied overhead to Cost of Goods Sold Prepare the appropriate fouinal entry. 3. Assume that the compony allocates any underapplied or overapplied overhead proportionally to Work in Process. Finished Goods. and Cost of Goods Sold Prepare the appropriate journal entry. 4. How much higher or lower wil net operating income be if the underappled or overapplied overhead is allocated to Work in Process. Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. Compute the underappled of overapplied overhead. Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate Journal entry. 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process. Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. How much higher or lower will net operating income be if the underapplied or overapplied overfiead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold
