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Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the basis of machine hours. On January 1 of the
Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the basis of machine hours. On January 1 of the current year, there were no balances in work-in-process or finished-goods inventories. The following estimates were included in the current year's budget. Total budgeted manufacturing overhead $ 188,000 Total budgeted machine hours 47,000 During January, the firm began the following production jobs: A79: 1,000 machine hours N08: 2,500 machine hours P82: 500 machine hours During January, job numbers A79 and N08 were completed, and job number A79 was sold. The actual manufacturing overhead incurred during January was $26,000. 4. Prepare a journal entry to close the balance calculated in requirement 3 into Cost of Goods Sold. (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 1 Record entry to close out balance of under or over applied overhead to cost of goods sold. Note: Enter debits before credits. Transaction 1 Record en General Journal Debit Credit No journal entry required Accounts receivable Cost of goods sold Direct labor View general journal
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