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help pls!!!! It was the end of the fiscal year, and Carol was evaluating her company's MOH. Since her company uses normal costing and applies
help pls!!!!
It was the end of the fiscal year, and Carol was evaluating her company's MOH. Since her company uses normal costing and applies overhead based on direct labor hours, she anticipated a difference in the amount of MOH that was applied compared to the amount that was actually incurred. Indeed, there was a difference- and it seemed huse! Here is what she sww within the MOH account, as well as detail from the beginning of the year when the budgeted MOH rate was determined: Carol is aware of the following company policy regarding any MOH difference: 'any MOH difference that is deemed 'immaterial' should be written off in the current period; any MOH difference that was deemed 'materiat' shculd be prorated to the appropriate accounts so as to better approximate actual costs:" Carol also has the following additional detail regarding the inventory accounts. Since Carol is unsure if this amount would be considered material or not, she decides to do the work for both options so that she can bring it to her supervisor and ask for additional ciarification regarding materiality (Round ony rates or proportions to four decimal places, es- 0.2510 and final answers to 2 decimal places, es, 5,275.25.) 1. Show the journal entry it the MOH ditference is to be written off entirely in the current period. (Credit occount titles are automatically indented when the amou atered, Do not indent manually. [ist all debit entries ( gore credit entries.) 2. Show the calculations and journal entry needed if the difference is to be prorated to the appropriate inventory and cost dccounts based on their ending balances. (Credit account tities are automotically indented when the omount is entered. Do not indent manually. List all debit entries before credit entries. 2. Show the cakculations and journal entry needed if the difference is to be prorated to the appropriate irventory and cost accounts based on their ending balances. (Credit occount titles are outomotically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) 3. Show the calculations and journalentry needed if the difference is to be prorated to the appropriate inventory and cost accounts based on the amount of applied MOH in each account. (Credit occount titles are outomatically indented when the amount hs entered. Do not indent manualiy. List all debit entries before credit entries) Step by Step Solution
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