Uvaadis Compary makes furniture using the letest automated technology. The company uses a job-order costing system and applies manulacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates 51,207,000 of total manufocturing overheod for an estimated activity level of 71,000 machine-hours. Outing the yest a large qusntity of fumiture on the market resulted in cutting back production and a bulldup of furniture in the. compery's warehouse. The compeny's cost records revealed the followinn actisi ..... a for the year: 1. Compule the underappied or overappled overhead. 2. Assume that the company cioses any underapplied or overapplied overhead to Cost of Goods Sold Prepare the appropriate journal 3. Assume that the compony allocstes any underapplied or overeppled overhead proportionaly to Work in Process, Finished Goods. and Cost of Goods Sold Prepare the appropriate journal entry 4. How much higher or lower wili inet operating income be if the underapplied or overapplied overhead is allocated to Work in Process; Finiekieg Gosds, Finishied Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Compiete this euertion by entering your answers in the tabs below. Assume that the company closes any underapplied or overapplicd overhoad to Cost of Goods Sold. Pro (If no entry is required for a transaction/event, select "No joumal entry required" in the first account f Journal entry worksheet Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. Notes Enter debits before credits. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select required" in the first account feld.) Journal entry worksheet Record the allocation of the underapplied/overapplied overhead to various accounts. Fiote: Eriter cebils befors credits. Duing the year, a iarge quantity of fumiture on the market resuled in cutting back production and a buldup of furniture in the constry's warehouse. The company's cost records revealed the following actual cost and operating data for the year: mepuien: 1. Corpule the undecappied or overapplied overhead. 2. Assume that the company cioses any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate Journal entry. 3. Aswume thst the company allocates any undersppied or overapplied overhead proportionally to Work in Process. Finished Goods. and Cost of Goods Sold. Prepare the spprophate journat entry. 4. How much tigher or lower wiil net operating income be if the underapplied or overapplied overhead is allocated to Work in Process. Finhed Goods, ard Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this ewertios by entering your an wwars in the tabs below
