Fairfield Company applies manufacturing overhead to products at a predetermined rate of $60 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here:

Item	Description			Total Cost
Direct materials	Used on Jobs 101 and 102				87,000
Indirect materials	Used on multiple jobs				14,000
Hourly labor wages	870 hours @ $30 per hour
	220 hours for Job 101 =	$	6,600
	250 hours for Job 102 =		7,500
	400 hours for Job 103 =		12,000		26,100
Factory supervision					3,950
Production engineer					5,300
Factory janitorial work					1,800
Selling, general, and administrative salaries					8,700
Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.)					6,600
Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.)					4,600

1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold.

Answer rating: 100% (QA)

A D 1 Actual manufacturing overhead 2 Indirect material 14000 3 Fa... View the full answer