Luzodis Company makes fumiture using the latest autonated tecinology. The compony uses a job-order costing system and appiles manufacturing ovehthead cost to products on the basis of machine-hours. The predeterinined ovecheid rate was based on a cost formula that estimates $8/4,000 of total marufacturing overhead for an estimated activily level of 74,000 machine hours During the yeas, a large quantity of furniture on the market resuited in cuting bock prociuction and a bui idup of furnitare in the company's watehouse. The company's cost records revealed the following astuat cost and operating. dota for the year weyureu: 1 Compute the underapplied or overoppled overhead 2. Assume that the company cioses any underapolied or overopplied overnead to Cost of coods sold. Prepare the aptroptiate journal entry. 3. Assume that the company atocates any underapplied or overappled ovemead proportionilly to Workin Process, Finshed Goocis. and Cost of Goods soid. Prepare the approprate joumol emy 4. How much highe or Jower will net operating incoine beif the underapplied or overappeed 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 tobs below. Compute the underapplied of cverapoved oyediead. Finished Goods, and Cost of Goods Sold rather than being closed to Cost or Goods Sold? Complete this question by entering your answers in the tabs below. Assume that the company closes any underappied or overapplied overhead to cost of coods sold prepare the appropilate journal entry. (tf no entry is required for a transaction/event, solect "No joumal 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 bold account. Note Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that the company a locatee any underappled or overapplied overneod proportionally to Work in Piocess, Hinished Goods, and cost of Goods Sold. Prepare the appropiate joumal entiy. Jif no ontry is reguired for a transactoneevent, select No joumat entry required" in the first account field Journal entry worksheet Record the aliocation of the underappled/overapplied overhead to various accounts. Note tinter debits before credits Complete this question by entering your answers in the tobs below. How much higher or lower will net operating income be if the underapplied or overapplied overbead is allocated to Work in Process, Finished Goods; and Cost of Goods Sold rather than being closed to Cost of Goods Sold
