Ryan Industries manufactures custom building fixtures. The firm has a job costing system with two categories (direct materials and direct manufacturing labor) and one indirect cost pool (manufacturing overhead, allocated at 225% of direct manufacturing labor costs. The following information is a select sample of data pertaining to September 2019.

A) Direct Materials Used $500 B) Indirect Materials Used $375 C) Direct Manufacturing Labor $400 D) Indirect Manufacturing Labor $475 E) Manufacturing Overhead ? F) Cost of Goods Manufactured $1,300 G) Cost of Goods Sold $1,200

Solve: 1. Prepare a set of journal entries to summarize the items provided above (A-G). 2. Prepare a final journal entry to dispose of the month-end under/over allocated manufacturing overhead as a write-off to COGS. 3. Explain in one sentence when (or why) it is appropriate to write off under/over allocated overhead to COGS.