Exercise $3-9($Static$)$ Applying Overhead; T$-$accounts; Journal Entries $[$LO$3-1,$ LO$3-2,$ LO$3-4]$

Harwood Company's job$-$order costing system applies overhead cost to jobs based on its machine$-$hours. The predetermined overhead rate of $$2\mathrm{.}40$ per

machine$-$hour was based on a cost formula that estimates $$192,000$ of total manufacturing overhead for an estimated activity level of $80,000$ machine$-$hours.

Required:

Assume during the year the company works only $75,000$ machine$-$hours and incurs the following costs in the Manufacturing Overhead and Work in Process

accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T$-$accounts.

$2$A$.$ Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T$-$account.

$2$B$.$ Prepare a joumal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$A

Required $2$B

Compute the overhead cost applied to Work in Process for the year and make the entry in your T$-$accounts.

Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T$-$account.

Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the entry to close the balance of the manufacturing overhead account

to Cost of goods sold account.

Note: Enter debits before credits,