Newton Corporation uses a job order costing system and allocates manufacturing overhead at a rate of $25 per machine hour. During the period, the company used 600 machine hours and actually incurred manufacturing overhead costs of $14,500.
a. Prepare a summary journal entry to record total manufacturing overhead allocated to jobs during the period.
b. Prepare a summary journal entry to record actual overhead costs incurred during the period (make the credit portion of the entry to “Various Accounts”).
c. Prepare the journal entry to close the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the period.