The following information is taken from the accounts of Latta Company. The entries in the T-accounts...
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The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 483,840 (b) 80,640 (a) Bal. 403,200 Bal. Cost of Goods Sold 660,000 (b) Bal. Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied Work in Process 11,800 (c) 750,000 Bal. 295,000 90,000 (c) Bal. 403,200 50,000 $ 24,000 62,400 316,800 $ 403,200 Finished Goods 40,000 (d) 750,000 130,000 (d) The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: 660,000 For example, of the $50,000 ending balance in work in process, $24,000 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry. The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 483,840 (b) 80,640 (a) Bal. 403,200 Bal. Cost of Goods Sold 660,000 (b) Bal. Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied Work in Process 11,800 (c) 750,000 Bal. 295,000 90,000 (c) Bal. 403,200 50,000 $ 24,000 62,400 316,800 $ 403,200 Finished Goods 40,000 (d) 750,000 130,000 (d) The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: 660,000 For example, of the $50,000 ending balance in work in process, $24,000 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
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Account Explanation of Entries Manufacturing Overhead Bal Beginning balance of manufacturing overhead 483840 b Overhead applied during the year This r... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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