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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

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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 $980,000 of total manufacturing overhead for an estimated activity level of 98,000 machine hours During the year, a large quantity of furniture on the market resulted in cutting back production and a bulldup of fumiture 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 underapplled 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 overapplled 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 ol overapplied overhead is allocated to Work in Process. Finished Goods, and Cost of Goods Sold rather than beling closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. 1. Compute the underapplied or overapplled overhead. 2. Assume that the company closes any underapplied or overapplled overhead to Cost of Goods Sold. Prepare the appropriate Journal entry. 3. Assume that the company allocates any underapplled or overapplled overhead proportionally to Work in Process, Finished Goods. and Cost of Goods Sold. Prepare the appropilate 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. Compute the underapplied or overapplied overhead. 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 "No fournal entry required" in the first account field.) Journal entry worksheet Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. Note: Enter debits before credits, Assume that the company allocates any underapplied or overapplled 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.) Journal entry worksheet Record the allocation of the underapplied/overapplied overhead to various accounts. Nate: Einter debits before credits. requirea: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplled overhead to Cost of Goods Sold. Prepare the appropilate fournal 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 underapplled or overapplled overhead is allocated to Work if 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

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