The following information is taken from the accounts of Foster Corp. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.

Manufacturing Overhead

(a)

408,000 (b)

10

Bal.

points

445,000

3,000

Skipped

Bal.

(b)

Bal.

Work in Progress

112,000 (c)

217,000

122,000

445,000

101,000

795,000

Bal.

(c)

Bal.

Finished Goods

170,500

(d)

795,000

114,000

851,500

d)

Cost of Goods Sold

81,500

The overhead applied to production during the year is distributed among the ending balances in the accounts as follows:

Work in Process, ending Finished Goods, ending

Cost of Goods Sold

Overhead applied

$ 35,600

44,500

364,900

$445,000

For example, of the $101,000 ending balance in Work in Process, $35,600 was overhead applied during the year.

Required:

1. Identify the reasons for entries (a) through (d).

Item (a):

Item (b):

Item (c):

Item (d)

2. The company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

View transaction list

Journal entry worksheet

Record the entry allocation of over applied overhead to the other account on the bases of amounts of overhead apply during the year in the ending balance during each account.

Note: Enter debits before credits.

Transaction

General Journal

Debit

Credit

Record entry

Clear entry

View general journ