Check my work 2 Luzadis Company makes furniture using the latest automated technology. The company 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 $520,000 of total manufacturing overhead for an estimated activity level of 65,000 machine-hours. 5 points During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: O eBook Machine-hours 54,000 Manufacturing overhead cost $ 488,000 Print Inventories at year-end: Raw materials $ 19,000 References Work in process (includes overhead applied of $25,920) $ 117, 000 Finished goods (includes overhead applied of $73, 440) $ 331, 500 Cost of goods sold (includes overhead applied of $332, 640) $ 1, 501, 500 Required: Q 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. Mc Graw HillCheck my work 2 Manufacturing overhead cost $ 488,000 Inventories at year-end: Raw materials $ 19,060 Work in process (includes overhead applied of $25,920) $ 117,000 Finished goods (includes overhead applied of $73, 440) $ 331, 500 5 Cost of goods sold (includes overhead applied of $332, 640) $ 1, 501, 500 points Required: O 1. Compute the underapplied or overapplied overhead. eBook 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. Print 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. References 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? Q Complete this question by entering your answers in the tabs below. + Required 1 Required 2 Required 3 Required 4 Compute the underapplied or overapplied overhead. Underapplied overhead cost Mc Graw HillCheck my work 2 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, 5 and Cost of Goods Sold. Prepare the appropriate journal entry. points 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? O eBook Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 Required 4 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.) + View transaction list View journal entry worksheet X No Event General Journal Debit Credit a Cost of goods sold Manufacturing overhead Mc Graw HillCheck my work 2 Manufacturing overhead cost $ 488, 000 Inventories at year-end: Raw materials $ 19,000 Work in process (includes overhead applied of $25,920) $ 117, 000 Finished goods (includes overhead applied of $73, 440) $ 331, 500 $ 1, 501, 500 5 Cost of goods sold (includes overhead applied of $332, 640) points Required: O 1. Compute the underapplied or overapplied overhead. eBook 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. Print 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. References 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? Q Complete this question by entering your answers in the tabs below. + Required 1 Required 2 Required 3 Required 4 Compute the underapplied or overapplied overhead. Underapplied overhead cost Mc Graw HillCheck my work 2 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, 5 and Cost of Goods Sold. Prepare the appropriate journal entry. points 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? O eBook Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 Required 4 How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Q Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? + Net operating income will be lesser if the underapplied overhead is allocated rather than closed entirely to cost of goods sold. Mc Graw Hill