Mathematics, 23.10.2020 19:10 cooper2017
Exercise 7-31 Prorate Over- or Underapplied Overhead (LO 7-3)
Aspen Company estimates its manufacturing overhead to be $615,600 and its direct labor costs to be $513,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $211,575. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $368,550. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $102,375. Actual manufacturing overhead for year 2 was $805,100. Manufacturing overhead is applied on the basis of direct labor costs.
Required:
Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers: 3
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Exercise 7-31 Prorate Over- or Underapplied Overhead (LO 7-3)
Aspen Company estimates its manufactu...
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