Luzadis Company makes furriture 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 $765,000 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. Buring 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 following actual cost and operating data for the year: Required: 1. Compute the underapplied or overapplied overhead 2 Assume that the company closes any underapplied or overapplied ovethead to Cost of Goods Sold. Prepare the appropriate journal entry: 3. Assume that the company aliocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goodsi and Cost of Goods Sold. Prepare the approprate journar 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 underappled or overapelied overhead proportionaliv to Work in Process, finished Gobds, and 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 jo entry. 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goo 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 Pro 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. 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 doses any underapplied or overapplied overhead to cost of coods Sold. Prepare the appropriate fournal entry. (if no entry is tequired for a transaction/event, select "No journal entry required" in the first sccount field.) 4. How much higher or lower will net operating income be if the underapplied or overapplled overhead is allocated to Work in Proces 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 of overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Gcods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No jourmal entry required in the first account field. 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 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
