Help Save & Exit Subm Saved 3-12 Check my work Luzadis Company makes furniture using the latest automated technology. The company uses a job- order costing system and applies manufacturing overhead cost to products on the basis of machine- hours. The predetermined overhead rate was based on a cost formula that estimates $520,000 of total manufacturing overhead for an estimated activity level of 65,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year ed 54,000 Machine-hours Manufacturing overhead cost S 488,000 Inventories at year-end: Raw materials Work in process (includes overhead applied of $25,920 ) Finished goods (ineludes overhead applied of $73,440) Cost of goods sold (includes overhead applied of $332, 640) 19,000 117,000 331,500 $1,501,500 ences Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prev 1 of 1 Next sc Q Search or type URL Submit Help Save & Exit Saved Check my work 19,000 Raw materials Work in process (includes overhead applied of $25,920) Finished goods (includes overhead applied of $73,440) Cost of goods sold (includes overhead applied of $332,640) S 117,000 S 331,500 $1,501,500 Required: 1. Compute the underapplied or overapplied overhead 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. 3. Assume that the company allocates any underapplied or overapplied overhead proportionally Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? to Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the underapplied or overapplied overhead. Required 2 > Required 1 Prev 1 of 1 Next Q Search or type URL $ % 2 G Search Google or type a URL B-12 Saved Help Save & Exit Submit Check my work Required 1 Required 2 Required 3 Required 4 Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare (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 entry to close the balance in the manufacturing overhead account to the cost of goods sold account. ces Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journal Prev 1 of 1 Next Q Search or type URL Search Google or type a URL Help Save & Exit Sub Saved Check my wor Required 4 Required 1 Required 2 Required 3 Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in F Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, required" in the first account field.) View transaction list Journal entry worksheet 1 Record the allocation of the underapplied/overapplied overhead to various accounts. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journal Prev 1 of 1 Next Search Google or type a URL Saved Help Save & Exit Submit Check my work Required 3 Required 4 ocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and he appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry field.) rksheet the underapplied/overapplied overhead to various General Journal Debit Credit Clear entry View general journal Q Search or type URL sle 2 3 G LC