Question
Beta Company provided the following information at year end: Raw material purchases $80,000 Advertising expenses $50,000 Net income $15,000 Manufacturing overhead applied $100,000 Actual manufacturing
Beta Company provided the following information at year end:
Raw material purchases $80,000
Advertising expenses $50,000
Net income $15,000
Manufacturing overhead applied $100,000
Actual manufacturing overhead $125,000
Unadjusted Cost of Goods Sold $225,000
Total Manufacturing Costs $300,000
Beginning Ending
Raw materials $50,000 $20,000
Work in process $150,000 $250,000
Finished goods $100,000 $75,000
a. Prepare income statement for Beta Company
b. Prepare schedule of goods manufactured for Beta Company
c. Prepare schedule of adjusted cost of goods sold for Beta Company
d. Prepare the journal entry and T accounts needed to clear the Manufacturing
Overhead account of over/under applied manufacturing overhead. How
does this journal entry affect Net Income?
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