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8. Goods costing $88,000 were completed and transferred to finished
goods.
9. Finished goods costing $75,000 to manufacture were sold on
account for $103,000.
Instructions
Journalize the transactions.
E2-13
Tombert Decorating uses a job order cost system to collect the costs of
its interior decorating business. Each client's consultation is treated as
a separate job. Overhead is applied to each job based on the number of
decorator hours incurred. Listed below are data for the current year.
Estimated overhead $960,000 Actual overhead $982,800 Estimated
decorator hours 40,000 Actual decorator hours 40,500
The company uses Operating Overhead in place of Manufacturing
Overhead.
Instructions
(a) Compute the predetermined overhead rate.
(b) Prepare the entry to apply the overhead for the year.
(c) Determine whether the overhead was under- or over applied and
by how much.
P2-4A
Agassi Company uses a job order cost system in each of its three
manufacturing departments. Manufacturing overhead is applied to
jobs on the basis of direct lab(); cost in Department D, direct labor
hours in Department E, and machine hours in Department K. In