47) Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed job number A33, which included 15 direct labor hours. Please provide the journal entry to allocate overhead to the job.
48) Gardner Machine Shop uses a predetermined manufacturing overhead rate of $63.20 per direct labor hour. In January, Gardener completed job number A33, which included 15 direct labor hours. Please provide the journal entry to allocate overhead to the job.
Learning Objective 17-4
1) The cost of goods manufactured is recorded as a debit to the Work in process account.
2) During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing overhead costs. Overhead costs have been underallocated.
3) During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $506,000 of manufacturing overhead costs. At year-end, the adjustment entry needed to clear the overhead balance to zero will include a debit to Cost of goods sold.
4) During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $460,000 of manufacturing overhead costs. At year-end, the adjustment entry needed to clear the overhead balance to zero will include a debit to Cost of goods sold.
5) The cost of goods manufactured is recorded as a debit to the Finished goods account.
6) When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process.