5/15/2021 Assignment Print View

1. Award: 20.00 points

 
 You did not receive full credit for this question in a previous attempt

The following information is taken from the accounts of Foster Corp. The entries in the T-accounts are summaries of the transactions that affected those
accounts during the year.

Manufacturing Overhead
(a) 416,000 (b) 455,000
Bal. 39,000

Work in Progress
Bal. 114,000 (c) 805,000
219,000
124,000
(b) 455,000
Bal. 107,000

Finished Goods
Bal. 173,500 (d) 860,500
(c) 805,000

Bal. 118,000

Cost of Goods Sold

(d) 860,500

The overhead applied to production during the year is distributed among the ending balances in the accounts as follows:

Work in Process, ending $ 36,400

Finished Goods, ending 45,500
Cost of Goods Sold 373,100

Overhead applied $455,000

For example, of the $107,000 ending balance in Work in Process, $36,400 was overhead applied during the year.

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5/15/2021 Assignment Print View

Required:
1. Identify the reasons for entries (a) through (d).

Item (a): Actual manufacturing overhead costs for the year.

Item (b): Overhead cost applied to work in process for the year.
Item (c): Cost of goods manufactured for the year.
Item (d): Cost of goods sold for the year.

2. The company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied during the year that
is in the ending balance in each account. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field.)

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5/15/2021 Assignment Print View

View transaction list View journal entry worksheet

No Transaction General Journal Debit Credit

1 1. Manufacturing overhead 39,000
Work in process 3,120
Finished goods 3,900
Cost of goods sold 31,980

References

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5/15/2021
Worksheet
Learning Objective: 05-
04 Record the journal
entries that reflect the
flow of costs in a job-
order costing system.
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Assignment Print View
Learning Objective: 05-05 Apply
overhead cost to work in process
using a predetermined overhead
rate.
Learning Objective: 05-07
Compute underapplied and
overapplied overhead cost, and
prepare the journal entry to close
the balance in manufacturing
overhead to the appropriate
accounts.
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