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The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data
The Wamth Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2020: (Click the icon to view the following data) Read t Data table Begin enterin head. (Use parentheses or a minus sign when Budgeted manufacturing overhead costs $ Overhead allocation base 5,100,000 Machine-hours Man $ Budgeted machine-hours 85,000 Manufacturing overhead costs incurred 5 5,350,000 a. Adju Actual machine-hours 90,000 Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as follows: 2020 End-of-Year Balance Coel Cost of Goods Sold Finished Goods Control Finish Work b. Adju to calc overal Work-in-Process Control Actual Machine-Hours 63,000 $ 18,000 9,000 Print Done 8,750,000 3,125,000 625,000 Cost of Goods Sold. Begin by selecting the formula "XXXX Use a minus sign or parentheses to show 1. Compute the budgeted manufacturing overhead rate for 2020. 2. Compute the under- or overallocated manufacturing overhead of Wamth Radiator in 2020. Adjust for this amount using the following: a. Write-off to Cost of Goods Sold b. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold c. Proration based on the overhead allocated in 2020 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold 3. Which method do you prefer in requirement 2? Explain. b. Adjust for 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, "XXXXX Use a minus sign or panintheses to show overallocated amounts and adjustments to be subtracted.) Proportion (decimal) (Over-) Underallocated OH Adjustment COGS FG WIP
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