Blackstone Incorporated had the following selected account balances at the end of 2014:

Work in process $200,000

Finished goods 150,000

Cost of goods sold 250,000

Factory overhead (overapplied) 18,000

The amount of factory overhead applied in 2014 was 200,000

Required:

a. Give the journal entry to record the factory overhead applied.

b. What was the actual overhead for the year?

c. Give the journal entry to dispose of the factory overhead balance assuming it is written off to the cost of goods sold.

d. Give the journal entry to dispose of the factory overhead balance assuming it is allocated among work in process, finished goods, and cost of goods sold based on ending balances.

e. Which method of disposing of under- or overapplied factory overhead cost is more accurate? Explain.

Answer rating: 100% (QA)

a Preparation of Journal entry to record the factory overhead applied We have Work in Process Accoun... View the full answer