Question
Deltor limited accepted a special order. The total estimated manufacturing overhead for the company amounted to $5,900,000 and total estimated direct labor hours were 400,000.
Deltor limited accepted a special order. The total estimated manufacturing overhead for the company amounted to $5,900,000 and total estimated direct labor hours were 400,000. The company allocates the manufacturing overhead based on the number of direct labor hours,. At the end of the period, the special order incurred 850,000 of direct materials and 910,000 of direct labor costs. On average, factory workers are being paid $25 per hours.
During the period, the company used 291,500 of indirect materials and 121,000 of indirect labor
A) Caluculate allocated manufacturing overhead costs and provide the related journal entry.
b) Provide the following journal entires to record indirect materials and indirect labor costs. Assume payments have not been made yet.
c) use the cost of goods sold method to account for any under or overallocated manufacturing overhead costs
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