Question
Blackstone Incorporated had the following selected account balances at the end of 2014: Work in process $200,000 Finished Goods 150,000 Cost of Goods Sold 250,000
Blackstone Incorporated had the following selected account balances at the end of 2014:
Work in process $200,000
Finished Goods 150,000
Cost of Goods Sold 250,000
Factory Overhead (overapplied) 18,000
Amount of Factory Overhead Applied in 2014 200,000
Required:
a. Give the journal entry to record the factory overhead applied
b. What was the actual overhead for the year?
c. Give the journal entry to dispose of the Factory overhead balance assuming it is written off to cost of goods sold
d. Give the journal entry to dispose of the Factory overhead balance assuming it is allocated among Work in Process Finished Goods, and Cost of Goods Sold based on ending balances
e. Which method of disposing of under-or overapplied factory overhead cost is more accurate? Explain.
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