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Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $284.000 and machine hours to be 14,200. Actual manufacturing overhead and machine hours were $325,000 and 15,200. respectively. Required: 1.& 2 Prepare the journal entries for actual and applied manufacturing overhead and transfer of manufacturing overhead account balance to cost of goods sold. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Transaction Debit Answer is complete but not entirely correct. General Journal Work in Process Inventory Manufacturing Overhead No 1 Credit a 347,887 347,887 % 2 b 325,000 Manufacturing Overhead Cash, Payables, etc 325,000 C 22,887 % Cost of Goods Sold Manufacturing Overhead 22,887 X
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