Answered step by step
Verified Expert Solution
Question
1 Approved Answer
how to solve this? I'Il do the Journal Entry for Company A for you. To recora costs and apply overhead at the predetermined rate ($212,50040%
how to solve this?
I'Il do the Journal Entry for Company A for you. To recora costs and apply overhead at the predetermined rate ($212,50040% =$85,000) Since Factory Overhead applied is equal to actual factory overhead, no adjustment to COGS is needed. Question 1 10pts For Company B, what amount should be debited to WIP? For Company B, what amount should be debited to WIP? Question 2 For Company B, journal entry should be prepared to transfer the underapplied overhead? Dr Be sure not to use abbreviations or commas in your answers. Information for three different companies follows. Each company applies factory overhead at the rate of 40% of direct labor cost. In each scenario, the following entry was made to record the actual overhead costs: Prepare a journal entry for each company to transfer raw materials to production, record direct labor costs on each job, and apply overhead at the predetermined rate. If the scenario involves underapplied or overapplied overhead, prepare an additional journal entry to transfer the amount to Cost of Goods Sold. Company A: Raw materials transferred to production totaled $100,000, and direct labor cost was $212,500. Company B: Raw materials transferred to production totaled $110,000, and direct labor cost was $200,000. Company C: Raw materials transferred to production totaled $90,000, and direct labor cost was $225,000 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