Smith Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following: (Click the icon to view the costs.) Smith's accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $364,000, not the $480,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was $610,000. The manufacturing overhead allocated to jobs was $395,500. Read the requirements Requirement 1. Prepare the journal entry to record manufacturing overhead costs incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Sun Foundry uses a predetermined manustacturing overhead rato 20 stocate overhead to individual jobs tased on the machine hours secunod. A te beginning of the year the company aspected to encuar ne Towng Cick the icon to the Smuthis accountant round an error the expense records from the year reported Depreciation en minuten part and equipment was cry 364.000.net 5460,000 that had orgina been reported The unadjusted cost of Good Sonce a year and was 5610.000 The manutachuring overed to jobs was 335.500 Readmete Requirements. Prepare the journal entry les recent manufacturing overtid consecuted (records the console eons on any news Journal Entry Date Accounts Credit De e icon to view the costs.) reported. Depreciation on manufact The manufacturing overhead alloca unta ted Accumulated Depreciation-Plant and Equipment guire Cost of Goods Sold t 1. Manufacturing Overhead Property Tax Payable Wages Payable Work in Process Inventory iead costs incurred. (Record debits Debit Credit i Data Table - ing Manufacturing overhead costs $ $ 630,000 Direct labor cost not $ 1,650,000 Machine hours. 90,000 At the end of the year, the company had actually incurred the following: purt Direct labor cost $ 1,230,000 $ 480,000 Depreciation on manufacturing plant and equipment Property taxes on plant. Sales salaries $ 19,500 $ . 26,500 $ 17,000 Delivery drivers' wages. Plant janitors' wages. Machine hours. $ hos 8,500 56,500 hours i Requirements X 1. Prepare the journal entry to record manufacturing overhead costs incurred 2. Prepare the journal entry to record the manufacturing overhead allocated to jobs in production 3. Use a T-account to determine whether manufacturing overhead is underallocated or overallocated and by how much 4. Record the entry to close out the underallocated or overallocated manufacturing overhead 5. What is the adjusted ending balance of Cost of Goods Sold
