The blue streak company has provided the following data for the month of April Beginning Ending Raw
Question:
The blue streak company has provided the following data for the month of April
Beginning Ending
Raw Materials $42,000 $35,000
Work in Process $28,000 $32,000
Finished Goods $68,000 $75,000
Additional Information:
Raw Materials Purchases $86,000
Direct Labor cost $82,000
Manufacturing overhead incurred $48,000
Bluestreak company used a predetermined overhead rate of $5 per machine-hour to apply overhead cost to jobs. a total of 9000 machine hours were used during the month of April. Any underapplied or overapplied manufacturing overhead is closed out to the cost of goods sold.
Required
1. Prepare a cost of goods manufactured in good form.
2. Prepare the necessary journal entry to close out any underapplied or overapplied overhead