Luzacis 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 $612,000 of total manufacturing overhead for an estimated activity level of 68.000 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. 50.000 570,000 1 Rachine hours Manufacturing overhead cost Inventories at year ond: materials work in process (includes overhead applied of $22,500) Finished goods (includes overhead applied of 575,500) cost of goods sold (includes overhead applied of sis1,000) 15.000 93.5e $117.900 $ 1,453,500 Required: 1. Compute the underapplied or overnpplied overhead. 2. Assume that the company cioses any underapplied or overopplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry 3. Assume that the company locates any underapplied or overopplied overhead proportionally to Work in Process. Finished Goods. 4. How much higher or lower will net operating income be if the underapplied or overopplied 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. quired fequired Reinet Compute the underapplied or overapplied overhead. Required 2 > Luzon Company makes future using the latest automated technology. The company uses 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 timeses 5612000 of total manufacturing overhead for an estimated activity level of 68.000 machine hours During the years large quantity of furniture on the market resulted in cutting back production and buildup of fumiture in the company's warehouse. The company's cost records revealed the wing actual contand operating data for the year s 0.000 He has an overhead cost Interesat year and Materials work in process (includes sverband pplied of 532.1 Finished goods Cindedes verhadap of 10) Cost of gods sold includes ever poliet of 1751.00 3 11.000 3 od 5 11. 11.4. Required 1. Compute the underapplied or overopplied overhead 2. Assume that the company cioses any underapplied or overapplied overhead to Cost of Goods Sold Prepare the appropriate journal entry 3. Assume that the company allocates any underapplied or overopplied 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 be operating income be if the underapplied or overopped 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 ford 1 Pred Headed Asume that the company does any under applied ord over to color sola. Preure the coropriate journal entry. brysorrhoevents that Viewraction Journal entry worksheet Record the entry to do the balance in the manufacturing overed to the cost of woods sold account Dort Record by Carry View Regards > Luradis Company makes furniture using the intest automated technology The company resojob-order costing system and applies manufacturing overhead cont to products on the basis of machine-hours The predetermined overhead rate was based on a cont formula that estimates $612.000 of total manufacturing overbead for an estimated activity level of 68.000 machine hours During the year olarge quantity of furniture on the market resulted in cutting back production and a buldup of furniture in the company warehouse. The company's cost records revealed the following actual cost and operating data for the year 5. STO hours facturing overhead out Inventore at your and triste work in a cludes overhead applied of 112, Finished goods includes were pplied of 178) conto de 10 (de ver applied of tis.) 18.00 2.500 . 3 1.0.0 Requtred 1. Compute the underapplied or overopplied 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 locates any underapplied or overopplied overhead proportional to Work in Process Finished Goods and Cost of Goods Sold Prepare the appropriate journal entry 4. How much higher or lower wil net operating income be if the underspplied or over applied overhead is allocated to Work in Process Finished Goods and Cost of Goods Sold rather than being dosed to cost of Goods Sold? Complete this question by entering your answers in the tabs below. Required Required Read 3 Assume that the company was underapplied or applied overtid proportional to Work Prosie Good and Cost of Good Son the appropriate journal entry throured for mal entry in the first account wwwracionit Journal entry worksheet Luzadis Company makes furniture using the lotest automated technology. The company uses job-order costing system ond epolles manufacturing overhead cost to products on the basis of machine-hours. The predetermined overneed rate Wos based on a cost formula thot estimates $612.000 of total manufacturing overhead for an estimated activity level of 68.000 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 ectual cost ond operating data for the year. SOLO 5706 Machine hour's Manufacturing overhead cost Inventories at year end raw materials Work in process (cludes overhoed applied of 322.500) Finished goods (includes bverhead applied of $76320 Cost of goods sold includes overhead applied of $351. ee) GO Required: 1. Compute the underapplied or overopplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold Prepare the oppropriate journal entry 3. Assume that the company allocates any underapplied or overapplied overhead proporsionally 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 a How much higher or lower will net operating income be it the underapplied or overapplied overhead allocated to Work in Process, Finished Goods, and cost of Goods Sold rather than being closed to cost of Goods Sold? Netopetaling come will be the Overalls ocated ather than ly to cost of goods solu (Required 3
