This is all one question but 4 parts, could you answer them please?:)
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $612.000 of total manufacturing overhead for an estimated activity level of 68,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a bulldup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year Machine-hours Manufacturing overhead coat Inventories at year-endi work in process ineludes overhead applied of 122,500) coat of goods sold includes overhead applied of 5351,600) 50,000 5570.000 3 14.000 1 95,500 1 317.900 $1,458,600 Required: 1. Compute the underapplied or overapplied overhead 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry 4. How much higher or lower wil net operating income be if the underapplied or overappiled overhead is located to Work in Process Finished Goods, and cost of Goods Sold rather than being closed to cost of Goods Sold? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Compute the underapplied or overapplied overhead Required 2 > Journal entry worksheet Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. Note: Enter debits before credits Event General Journal Dobit Credit 1 Record entry Clear entry View general Journal Journal entry worksheet Record the allocation of the underapplied/overapplied overhead to various accounts. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general Journal Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applles manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $612,000 of total manufacturing overhead for an estimated activity level of 68,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year. Machine-hours Manufacturing overhead coat Inventories at year-endi raw materials Work in process (includes overhead applied of $22,500) Finished goods (includes overhead applied of 576,500) Coat of goods sold includes overhead applied of $351,000) 50,000 5 570,000 5 18,000 $ 93,500 $317.900 $ 1,458,600 Required: 1. Compute the underappiled or overapplied overhead. 2. Assume that the company closes any underapplied or overappled overhead to Cost of Goods Sold. Prepare the appropriate journal entry 3. Assume that the company allocates any underappiled or overappilled overhead proportionally to Work in Process, Finished Goods, 4. How much higher or lower wilt net operating income be if the underappilled or overapplied overhead is allocated to Work in Process, Finished Goods, and Cast of Goods Sold rather than being closed to cost of Goods Sold? Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to work in Process, Finished Goods, and cost of Goods Sold rather than being closed to cost of Goods Sold? Not operating income will be tho overhead is located rather than closed entirely cost of goods sold
