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 $1152,000 of total manufacturing overhead for an estimated activity level of 72,000 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 fnilnwinn back. ata for the year 1 Compute the underapplied or overapplied overhead entry. 3. Assume that the company allocates any underapplied or overapplled overhead proportionally to Work in Process. Finished Goods, and Cost or 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. Compute the underapplied or 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 $1,152,000 of total manufacturing overhead for an estimated activity level of 72,000 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 oneratine riata for the year: 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 joumal 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. Assume that the company closes any underapplied or ovenpplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (Ht po entry is required for a transactionvevent, pelot "No founal entry roquied in the first account feld ) (II no entry is required for a transaction/event, select "No joumal entry required" in the first account field.) 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 $1,152,000 of total manufacturing overhead for an estimated activity level of 72,000 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: 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 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 joumal 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. Assume that the company allocates any underapplied or overappled 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 "No journal entry required" in the first account field.) 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 $1,152000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of fumiture in the company's warehouse, The company's cost records revealed the followina actual cost and nnonatian data for the year. 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Soid. 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. How much higher or lower will net operating income be if the undarapplied or overapplied overhead is allocated to Work in. Process, Finished Goods, and Cost of Goods Sold rather than hular closed to Cost of Goods Sold
