The Hazy Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. TI following data are for 2017: Budgeted manufacturing overhead costs $ 5,100,000 Overhead allocation base Machine-hours Budgeted machine-hours 85,000 Manufacturing overhead costs incurred $ 5,200,000 Actual machine-hours 90,000 Machine-hours data and the ending balances (before proration of under-or overallocated overhead) are as follows: Actual Machine Hours 2017 End-of-Year Balance Cost of Goods Sold 63,000 $ 8,750,000 Finished Goods Control 18,000 3,125,000 Work-in-Process Control 9,000 625,000 Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate. Budgeted manufacturing overhead 5,100,000 Budgeted machine-hours 85,000 Budgeted manufacturing overhead rate 60 Requirement 2. Compute the under- or overallocated manufacturing overhead of Hazy Radiator in 2017. Begin by selecting the formula you will use. Next, enter the amounts in the formula and compute the under-or overallocated manufacturing overhead. (Use parentheses or a minus sign when entering overallocated amounts.) Manufacturing overhead Acutal Machine Hours Overhead Rate Manufacturing overhead incurred Manufacturing overhead allocated underallocated (overallocated) Manu. Overhead Allocated 5,200,000 5,400,000 (200,000) CA a. Dispose of this amount using a write-off to Cost of Goods Sold. Show the account balances after the write-off. Cost of Goods Sold Account Balance After Proration $ 8,550,000 3,125,000 625,000 Finished Goods Control Work-in-Process Control b. Dispose of the amount using a proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold. Begin by selecting the formula to calculate the adjustment to each account. Then enter the amounts in the formula (Enter the proportions as a decimal to three decimal places, "X.XXX". Use a minus sign or parentheses to show overallocated amounts and adjustments to be subtracted.) Proportion (decimal) (Over-) Underallocated OH COGS 0.700 $ = Adjustment $ (140,000) (50,000) (10,000) 0.250 X (200,000) (200,000) (200,000) FG WIP 0.050 X Now enter the account balances after the write-off. Account Balance After Proration 8,610,000 Cost of Goods Sold Please help explain how Finished Goods Control 3,075,000 to get these amounts as Work-in-Process Control 615,000 well as how to solve for the part below c. Dispose of the amount using a proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold. Begin by selecting the formula to calculate the adjustment to each account. Then enter the amounts in the formula. (Enter the proportions as a decimal to three decimal places, "X.XXX". Use a minus sign or parentheses to show overallocated amounts and adjustments to be subtracted.) Adjustment COGS X FG X WIP X
