Exercise $11-33$ Journal Entries for Overhead $($Appendix A$)($LO $11-8)$

Crystal Glassware Company has the following standards and flexible$-$budget data.

Standard variable$-$overhead rate $ $7\mathrm{.}00$ per direct$-$labor hour

Standard quantity of direct labor $3$ hours per unit of output

Budgeted fixed overhead $ $114,000$

Budgeted output $19,000$ units

Actual results for April are as follows:

Actual output $12,000$ units

Actual variable overhead $ $316,000$

Actual fixed overhead $ $107,000$

Actual direct labor $45,000$ hours

Required:

Prepare journal entries for the following transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Record the incurrence of actual variable overhead and actual fixed overhead.

Add variable and fixed overhead to Work$-$in$-$Process Inventory.

Close underapplied or overapplied overhead into Cost of Goods Sold.

$1.$Record the incurrence of actual variable overhead and actual fixed overhead.

Transaction General Journal Debit Credit

$1$

General Journal entry options: $($No journal entry required; Accounts Payable; Accounts receivable; costs of goods sold; direct materials; production overhead; sales revenue; various accounts; wages payable; work$-$in$-$process inventory$)$

$2.$Record the applied production overhead.

Transaction General Journal Debit Credit

$2$

General Journal entry options: $($No journal entry required; Accounts Payable; Accounts receivable; costs of goods sold; direct materials; production overhead; sales revenue; various accounts; wages payable; work$-$in$-$process inventory$)$

$3.$

Record the entry to close underapplied or overapplied overhead into Cost of Goods Sold.

Transaction General Journal Debit Credit

$3$

General Journal entry options: $($No journal entry required; Accounts Payable; Accounts receivable; costs of goods sold; direct materials; production overhead; sales revenue; various accounts; wages payable; work$-$in$-$process inventory$)$