Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harwood Company uses a job-order costing system that applles overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.70

image text in transcribed
image text in transcribed
image text in transcribed
Harwood Company uses a job-order costing system that applles overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.70 per machine-hour was based on a cost formula that estimates $243,000 of total manufacturing overhead for an estimated activity level of 90,000 machine-hours. Required: 1. Assume that during the year the company works only 85,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work In Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts 2A. Compute the amount of underappled or overapplled overhead for the year and show the balance in your Manufacturing Overhead T-account. 28. Prepare a Journal entry to close the company's underappled or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Reg 1 Compute the amount of overhead cout that would be applied to work in Process for the year and make the entry in your T-accounts. (6) Work in Process 810,000 100,000 (Direct materials) (Direct labor (Overhead) (a) Manufacturing Overhead 31,000 9,000 82.000 37000 8.000 66,000 (Maintenance) (Indirect materials) (Indirect labor) (Utos) (inco) (Depreciation) Balance Harwood Company uses a job-order costing system that applles overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.70 per machine-hour was based on a cost formula that estimates $243,000 of total manufacturing overhead for an estimated activity level of 90,000 machine-hours. Required: 1. Assume that during the year the company works only 85,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work In Process accounts: Compute the amount of overhead cost that would be applied to Work In Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplled or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account 28. Prepare a Journal entry to close the company's underappled or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account from Red 1. manufacturing overbond Reg 1 Reg 2A Req 2B Prepare a journal entry to close the company's underapplied or overapplied overhead 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Foundations A Pacific Rim Focus

Authors: Kathryn Bartol, Margaret Tein, Graham Matthews, Bishnu Sharma, Brenda Scott Ladd

3rd Edition

978-0070284944, 0070284946

Students also viewed these Accounting questions