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jerico jerico
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Bullz Company manufactures an energy drink. The company uses a budgeted indirect-cost rate for its manufacturing operations and during 2014 allocated $1,000,000 to work-in-process inventory. Actual overhead incurred was $1,200,000.

Ending balances in the following accounts are:
   Work-in-Process   $ 100,000
   Finished Goods   750,000
   Cost of Goods Sold   4,150,000

Required:
a.   Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold. Be sure your journal entry closes the related overhead accounts.

b.   Prepare a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending account balances. Be sure your journal entry closes the related overhead accounts.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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jerico Author
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#2
9 years ago
Very happy to know people like you still exist. Really, without your help, I wouldn't understand the content one bit.
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9 years ago
Grinning Face
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3 years ago
Thank you
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#5
3 years ago
Thank you
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#6
3 years ago
Thank you
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#7
3 years ago
thank u
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