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8 January, 09:11

1 - Storm Concert Promotions: Determine whether overhead is overapplied or underapplied.

2 - Storm Concert Promotions: Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

3 - Valle Home Builders: Determine whether overhead is overapplied or underapplied.

4 - Valle Home Builders: Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Storm Concert Promotions Valle Home Builders

Actual indirect materials costs $12,800 $6,800

Actual indirect labor costs $55,500 $47,000

Other overhead costs $17,100 $49,000

Overhead applied $91,600 $98,400

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Answers (1)
  1. 8 January, 12:46
    0
    Answer and Explanation:

    1. The overhead is overapplied or underapplied is shown below:-

    Valle Home Storm:

    Particulars Amount

    Indirect materials $12,800 $91,600 Applied overhead

    Indirect Labor $55,500

    Other overhead costs $17,100

    $85,400 $6,200 Over applied overhead

    2. The Journal entry is shown below:-

    Factory overhead Dr, $6,200

    To Cost of goods sold $6,200

    (Being overapplied overhead is recorded)

    3. The overhead is overapplied or underapplied is shown below:-

    Valle Home Builders:

    Indirect materials $6,800 $98,400 Applied overhead

    Indirect Labor $47,000

    Other overhead costs $49,000

    Underapplied overhead $4,400

    4. The Journal entry is shown below:-

    Cost of goods sold Dr, $4,400

    To Factory overhead $4,400

    (Being under applied is recorded)
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