Question: Refer to the data in Exercise 3 25A Freeman s accountant found

Refer to the data in Exercise 3-25A. Freeman’s accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $400,000, not the $480,000 as originally reported. The unadjusted cost of goods sold balance at year-end was $600,000.
In Exercise 3-25A
Manufacturing overhead costs ........................................................... $ 600,000
Direct labour cost............................................................................... 1,500,000
Machine hours................................................................................... 75,000
Requirements
1. Prepare the journal entry(s) to record manufacturing overhead costs incurred.
2. Prepare the journal entry to record the manufacturing overhead allocated to jobs in production.
3. Use a T-account to determine whether manufacturing overhead is underallocated or over-allocated and by how much.
4. Record the entry to close out the underallocated or overallocated manufacturing overhead.
5. What is the adjusted ending balance of cost of goods sold?

View Solution:


Sale on SolutionInn
Sales0
Views61
Comments
  • CreatedApril 30, 2015
  • Files Included
Post your question
5000