Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
work in process inventory $37,935 finished goods inventory $88,515 Costs of Goods sold $295,050 Southern Rim Parts estimates its manufacturing overhead to be $485,000 and
work in process inventory $37,935finished goods inventory $88,515 Costs of Goods sold $295,050
Southern Rim Parts estimates its manufacturing overhead to be $485,000 and its direct labor costs to be $970,000 for yeart. The first three jobs that Southern Rim worked on had actual direct labor costs of $56,000 for Job 301. $81,000 for Job 302, and $130,000 for Job 303. For the year, actual manufacturing overhead was $444,000 and total direct labor cost was $843,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory 5 37,935 Tinished goods inventory 88,515 Cost of goods sold 295,050 Required: Prepare an entry to prorate the under or overapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet
finished goods inventory $88,515
Costs of Goods sold $295,050
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668e0951bd40a_529668e09515d6c3.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668e09525a8c9_529668e0951f3181.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started