Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Winston Company estimates that the factory overhead for the following year will be $1.148.400. The company has decided that the basis for applying factory

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Winston Company estimates that the factory overhead for the following year will be $1.148.400. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 29,600 hours. The total machine hours for the year were 54,800 hours. The actual factory overhead for the yes was 31.000.000 Required (a) Determine the total factory overhead amount anried (1) Calculate the overalied or underwed amount for the your inter the amount as pove le Prepare the journal entry to close Factory Overhead into cost of Good Sold Refer to the Chart of Account Recording of account Mines 39 CHART OF ACCOUNTS Winston Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 131 Materials 133 Work in Process EXPENSES 135 Factory Overhead 510 Cost of Goods Sold 137 Finished Goods 141 Supplies 142 Prepaid Expenses 181 Land 520 Wages Expense 531 Insurance Expense 532 Utilities Expense 533 Office Supplies Expense 560 Depreciation Expense 590 Miscellaneous Expense 710 Interest Expense 190 Factory Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 10 Th CULO 39 135 Factory Overhead 510 Cost of Goods Sold 137 Finished Goods 141 Supplies 142 Prepaid Expenses 181 Land 520 Wages Expense 531 Insurance Expense 532 Utilities Expense 533 Office Supplies Expense 560 Depreciation Expense 590 Miscellaneous Expense 710 Interest Expense 190 Factory Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary (a) Determine the total factory overhead amount applied. Total factory overhead applied $ (b) Calculate the overapplied or underapplied amount for the year Enter the amount as positive values. Factory overhead by s (al (c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold on December 31. Refer to the Chart of Accounts for exact wording PAGE 1 (b JOURNAL DATE DESCRIPTION POST. REF: DEBIT CREDIT 2 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland

5th Edition

1119989485, 9781119989486

More Books

Students also viewed these Accounting questions