{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T01:23:26-04:00", "answer_date": "2024-06-29 01:23:26", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4437942", "url": "\/study-help\/questions\/luzadis-company-makes-furniture-using-the-latest-automated-technology-the-4437942", "question_creation_date_js": "2024-06-29T01:23:26-04:00", "question_creation_date": "Jun 29, 2024 01:23 AM", "meta_title": "[Solved] Luzadis Company makes furniture using the | SolutionInn", "meta_description": "Answer of - Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and | SolutionInn", "meta_keywords": "luzadis,company,makes,furniture,latest,automated,technology,job-order,costing,system,applies,manufacturing", "question_title_h1": "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", "question_title": "Luzadis Company makes furniture using the latest automated technology. The company uses", "question_title_for_js_snippet": "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 $560,000 of total manufacturing overhead for an estimated activity level of 70,000 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 datafor the year Machine hours61,000 Manufacturing overhead cost$514,000 Inventories at year end Raw materials$14,000 Work in process (includes overhead applied of $48,800)$188,000 Finished goods (includes overhead applied of $92,720)$357,200 Cost of goods sold (includes overhead applied of $346,480)$1,334,800 Required 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 overappliedoverhead 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 Required 1 Required 2 Required 3 Required 4 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 journal entry required in the first account field ) View transaction list 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 Event General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 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 No journal entry required in the first account field ) View transaction list Journal entry worksheet Record the allocation of the underapplied overapplied overhead to various accounts Note Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general journalRequired 1 Required 2 Required 3 Required 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 Net operating income will be if the overhead is allocated rather than closed entirely to cost of goods sold ", "question_description": "

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 $560,000 of total manufacturing overhead for an estimated activity level of 70,000 machine-hours.<\/p>

<\/p>

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 datafor the year:<\/p>

<\/p>

Machine-hours61,000<\/p>

Manufacturing overhead cost$514,000<\/p>

Inventories at year-end:<\/p>

Raw materials$14,000<\/p>

Work in process (includes overhead applied of $48,800)$188,000<\/p>

Finished goods (includes overhead applied of $92,720)$357,200<\/p>

Cost of goods sold (includes overhead applied of $346,480)$1,334,800<\/p>

<\/p>

<\/p>

Required:<\/strong><\/p>

1. Compute the underapplied or overapplied overhead.<\/p>

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.<\/p>

3. Assume that the company allocates any underapplied or overappliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.<\/p>

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?<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

\"image\"image\"image<\/div><\/div><\/div> Required 1 Required 2 Required 3 Required 4 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 journal entry required\" in the first account field.) View transaction list 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. Event General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Required 3 Required 4 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 \"No journal entry required\" in the first account field.) View transaction list Journal entry worksheet Record the allocation of the underapplied\/overapplied overhead to various accounts. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journalRequired 1 Required 2 Required 3 Required 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? Net operating income will be if the .... overhead is allocated rather than closed entirely to cost of goods sold.", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "1949395863", "uri": "\/textbooks\/math-practice-tests-for-the-act-1st-edition-9781949395860", "name": "Math Practice Tests For The ACT", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:23:26", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/pressure-drop-required-for-a-pipe-with-fittings-what-pressure", "description": "Pressure drop required for a pipe with fittings. What pressure drop is needed for pumping water at 20 o C through a pipe of 25 cm diameter and 1234 m length at a rate of 1.97 m\/s? 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