Luzadis Company makes fumiture 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 bulldup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: Required: 1. Compute the underapplied or overapplied oveinead: 2. Assume that the compary cioses any uncerapplied or overopplied overhead to Cost of Goods Sold. Prepare the appropriate joumal entry. 3. Assume that the company ollocates any underapplied or overapplied ovemead proportonally to Work in Process. Finished Goods. and Cost of Goods Sold prepare the oppropriate journal entry 4. How much higher or lower wil net operating income pe if the underoppled or overappled overhead is allocated to Work in Frocess. Finisheo Goods, and Cost of Goods Sold rather then being cloked to Cost of Goods Sold? Complete this queetion by antering your answars in tha tabe belaw. Compute the underapplied or ewerapplied ovirhiead. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "tio journal entry required" in the first account field.) Journal entry worksheet Record the sentry to close the balance in the manufacturing overhead account to the cost of goods sold account. Netel/ Eintef deble before ondit? 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. (If no entry is required for a transaction/event, select "Mo journal entry, required" in the first account field.) Journal entry worksheet Record the allocation of the underapplied/overapplied overhead to various accounts. Sootsi Ereter debits befors creditz. Requlred: 1. Compute the underappled or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropnate joumal 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. 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
