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Required information The following information applies to the questions displayed below) Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's

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Required information The following information applies to the questions displayed below) Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in- process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenser Total $ 5,600,000 4,350,000 64,000 2,860,000 1,740,000 59,000 828,000 2,160,000 $17,661,000 Job no. 2077 was completed in January 20x2; there was no work in process ot year end. All Jobs produced during 20x2 were sold with the exception of job no 2143, which contained direct-material costs of $155,000 and direct labortharges of $85,000. The company charges any under-or overapplied overhead to Cost of Goods Sold. Journal entry worksheet 35 Record transfer of job cost from work in process to finished goods Inventory Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal 5-a. Compute the amount of under-or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. ReqSA Reg 5B Compute the amou of under or overapplied overhead at year-end. 6. Determine the company's 20x2 cost of goods sold. Finished-goods inventory, Jan. 1 Cost of goods available for sale Unadjusted cost of goods sold Cost of goods sold 7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? Yes No

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