Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fairfield Company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour. Its actual manufacturing costs for the most
Fairfield Company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here: Item Direct materials Indirect materials Hourly labor wages Description Used on Jobs 101 and 102 Used on multiple jobs 940 hours @ $27 per hour 190 hours for Job 101 = 250 hours for Job 102 - Total Cost $ 73,000 13,900 $5,130 6,750 500 hours for Job 103 = 13,500 25,380 Factory janitorial work Factory supervision Production engineer Selling, general, and administrative salaries Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.) 4,050 5,300 1,200 9,200 6,700 4,200 1. Prepare the journal entry to close the 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.) View transaction list Journal entry worksheet 1 Record the transfer of manufacturing overhead account balance to cost of goods sold. Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry Clear entry View general journal 2. Indicate whether the entry in requirement 1 will increase or decrease Cost of Goods Sold. Increase O Decrease
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started