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Exercise 7 - 3 3 ( Algo ) Prorate Under - or Overapplied Overhead ( LO 7 - 3 ) Antoine Machining estimated its manufacturing
Exercise Algo Prorate Under or Overapplied Overhead LO
Antoine Machining estimated its manufacturing overhead to be $ and its direct materials costs to be $ in Year Three of the jobs that Antoine Machining worked on in Year had actual direct materials costs of $ for Job AM $ for Job AM and $ for Job AM For Year actual manufacturing overhead was $ and total direct materials cost was $ Manufacturing overhead is applied to jobs on the basis of direct materials costs using predetermined rates.
Overhead applied in each of the inventory accounts is as follows:
Workinprocess inventory $
Finished goods inventory
Cost of goods sold
Required:
Prepare an entry to allocate the under or overapplied overhead.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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