Refer to the information presented in E2-7 for Cambridge manufacturing company.
Information from E2-7
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000. Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively.
1. Prepare the journal entries to record actual and applied manifesting overhead.
2. Prepare the journal entry to transfer the overhead balance to Cost of Goods Sold.