Latta Company provided the following T - accounts for this year. Manufacturing Overhead Debit Credit ( a
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Question:
Latta Company provided the following Taccounts for this year.
Manufacturing Overhead
Debit Credit
ab
Balance
Work in Process
Debit Credit
Balance c
b
Balance
Finished Goods
Debit Credit
Balance d
c
Balance
Cost of Goods Sold
Debit Credit
d
The overhead applied to production is distributed among Work in Process, Finished Goods, and Cost of Goods Sold at the end of the year as follows:
Work in Process, ending $
Finished Goods, ending
Cost of Goods Sold
Overhead applied $
For example, of the $ ending balance in work in process, $ was applied overhead.
Required:
Identify reasons for entries a through d
Assume underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry.
Assume underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: