Question 3 of 4 2.08/3 View Policies Show Attempt History Current Attempt in Progress Waterway, Inc., manufactures ergonomically designed computer furniture. Waterway uses a job order costing systemOn November 30, the Work in Process Inventory consisted of the following jobs: Job No. Item Units Accumulated Cost $500,000 CC723 Computer caddy 15,000 CH291 Chair 10,000 246,850 PS812 Printer stand 17.000 133.000 $879,850 On November 30, Waterway's Direct Materials Inventory account totaled $122,000, and its Finished Goods Inventory totaled $532,000. Waterway applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $2,184,000, and the company planned to use 168,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 118,000 machine hours, total manufacturing overhead amounted to $1818,700, and Cost of Goods Sold was $4,680,000. Waterway purchased $638,000 in direct materials in December and incurred the following costs for jobs in process that month: Materials Issued Machine Hours Direct Labor Hours Job No. CC723 Direct Labor Cost $115,750 $28,800 $85,000 4,250 9,600 CH291 $7,000 650 2,400 PS812 $110,000 4,400 14,300 $171,600 DS444 $123,000 2,200 8,700 $104,400 The following jobs were completed in December and transferred to the Finished Goods Inventory: Item Job No. CC723 Computer caddy Units 15,000 10,000 5,000 CH291 Chair DS444 Desk Assume that Waterway sold 8,200 computer caddies, 8,000 chairs, and 4,500 desks in December Your answer is correct. Waterway incurred $172,800 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under-or overapplied for the year? By how much? Overhead Underapplied by $ 308000 Your answer is correct. Assume that Waterway closes under-or overapplied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cost of Goods Sold 308000 308000 Manufacturing Overhead Assume that Waterway prorates under-or overapplied overhead to the appropriate accounts Calculate the allocated amounts and adjust the account balances as needed. (Round % of total answers to 1 decimal places, eg. 52.7% and other answers to decimal places eg. 5,275.) Ending Balance % of total Allocation Adjusted Ball Work in Process 471800 27 % $ 83150 Finished Goods $ 426540 24 96 $ 73920 $ Cost of Goods Sold $ 876560 49 % % $ 150920 $ Your answer is partially correct Assume that Waterway prorates under-or overapplied overhead to the appropriate accounts Calculate the allocated amounts and adjust the account balances as needed. (Round % of total answers to 1 decimal places, eg. 52.7% and other answers to O decimal places eg. 5,275.) Ending Balance % of total Allocation Adjusted Balance 471800 27 % $ 83160 $ 554960 426540 24 96 $ 73920 $ 500460 876560 49 % $ 150920 $ 1027480
