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 $405,000, not the $470,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was $640,000. The manufacturing overhead allocated to jobs was $448,000. Read the requirements. Requirement 1. Prepare the journal entry to record manufacturing overhead costs incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Debit Credit Journal Entry Accounts Cost of Goods Sold Property Tax Payable Wages Payable Work in Process Inventory 18,000 11,500 Data Table Manufacturing overhead costs ........$ Direct labor cost ...................$ Machine hours..................... 570,000 1,450,000 71,250 At the end of the year, the company had actually incurred the following: 1,170,000 Direct labor cost ...........................$ Depreciation on manufacturing plant and equipment Property taxes on plant....... ..............$ Sales salaries Delivery drivers' wages..... Plant janitors' wages.... Machine hours........ 470,000 18,000 25,500 14,000 11,500 56,000 hours Print Done Requirements 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? Print Done 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 $405,000, not the $470,000 that had originally been reported. The unadjusted Cost of Goods Sold balance at year-end was $640,000. The manufacturing overhead allocated to jobs was $448,000. Read the requirements. Requirement 1. Prepare the journal entry to record manufacturing overhead costs incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Debit Credit Journal Entry Accounts Cost of Goods Sold Property Tax Payable Wages Payable Work in Process Inventory 18,000 11,500 Data Table Manufacturing overhead costs ........$ Direct labor cost ...................$ Machine hours..................... 570,000 1,450,000 71,250 At the end of the year, the company had actually incurred the following: 1,170,000 Direct labor cost ...........................$ Depreciation on manufacturing plant and equipment Property taxes on plant....... ..............$ Sales salaries Delivery drivers' wages..... Plant janitors' wages.... Machine hours........ 470,000 18,000 25,500 14,000 11,500 56,000 hours Print Done Requirements 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? Print Done
