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Refer to Question 4-28 to answer this: https://www.chegg.com/homework-help/questions-and-answers/xls-4-28-job-order-costing-cma-adapted-lo-5-ergofurn-inc-manufactures-ergonomically-design-q44803727?trackid=0eTeVSCM Please explain each step! Thank you! KLS 4-30 Under- and overapplied overhead (LO 6) Refer to Problem
Refer to Question 4-28 to answer this: https://www.chegg.com/homework-help/questions-and-answers/xls-4-28-job-order-costing-cma-adapted-lo-5-ergofurn-inc-manufactures-ergonomically-design-q44803727?trackid=0eTeVSCM
Please explain each step! Thank you!
KLS 4-30 Under- and overapplied overhead (LO 6) Refer to Problem 4-28. If you have not completed that problem, do so at this time. Required a. ErgoFurn incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? b. Why was overhead under- or overapplied for the year? C. Assume that ErgoFurn closes under- or overapplied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. d. Assume that ErgoFurn prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. e. Which method of under- or overapplied overhead disposition is more appropriate for ErgoFurn? Why? KLS 4-30 Under- and overapplied overhead (LO 6) Refer to Problem 4-28. If you have not completed that problem, do so at this time. Required a. ErgoFurn incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? b. Why was overhead under- or overapplied for the year? C. Assume that ErgoFurn closes under- or overapplied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. d. Assume that ErgoFurn prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. e. Which method of under- or overapplied overhead disposition is more appropriate for ErgoFurn? WhyStep by Step Solution
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