1 answer

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis...

Question:

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The companyComplete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the amount of underapplied or

Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Prepare a journal entry to close the c

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $3.00 per machine-hour was based on a cost formula that estimates $258,000 of total manufacturing overhead for an estimated activity level of 86,000 machine-hours. Required: 1. Assume that during the year the company works only 81,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts. Work in Process (a) 770,000 (Direct materials) (Direct labor) 96,000 Manufacturing Overhead (Maintenance) 27,000 (Indirect 8,600 materials) (Indirect labor) 88,000 (Utilities) 42,000 (Insurance) 7,600 (Depreciation) 76,000 Balance (Overhead) (a) Req 1 Req 2A >
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. manufacturing overhead < Req 1 Req 2B>
Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less A View transaction list Journal entry worksheet 1 > Record the entry to close the balance of the manufacturing overhead account to COGS account. Note: Enter debits before credits. General Journal Debit Credit Event 1 Record entry View general journal Clear entry < Req 2A Reg 2B

Answers

1.

Manufacturing overhead
Maintenance 27000 243000 (a) applied overhead (81000*$3.00)
Indirect materials 8600
Indirect labor 88000
Utilities 42000
Insurance 7600
Depreciation 76000
Balance 6200
Work in process
Direct materials 770000
Direct labor 96000
Overhead (a) 243000

2a.

Underapplied Manufacturing Overhead by $6,200.

2b:

Event General Journal Debit Credit
1 Cost of goods sold 6200
       Manufacturing Overhead 6200
.

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