Newton Corporation uses a job order costing system and allocates manufacturing o
ID: 2377441 • Letter: N
Question
Newton Corporation uses a job order costing system and allocates manufacturing overhead at a rate of $25 per machine hour. During the period, the company used 600 machine hours and actually incurred manufacturing overhead costs of $14,500.
Prepare the journal entry to record total manufacturing overhead allocated to jobs during the period. (Omit the "$" sign in your response.)
Prepare the journal entry to record actual overhead costs incurred during the period. (Omit the "$" sign in your response.)
Prepare the journal entry to close the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the period. (Omit the "$" sign in your response.)
a.Prepare the journal entry to record total manufacturing overhead allocated to jobs during the period. (Omit the "$" sign in your response.)
Explanation / Answer
Newton Corporation uses a job order costing system and allocates manufacturing overhead at a rate of $25 per machine hour. During the period, the company used 600 machine hours and actually incurred manufacturing overhead costs of $14,500.
(a)
Prepare a summary journal entry to record total manufacturing overhead allocated to jobs during the period. Omit the "$" sign in your response.
General Journal
Debit
Credit
Work in Process Inventory
15,000
Manufacturing Overhead
15,000
(b)
Prepare a summary journal entry to record actual overhead costs incurred during the period (make the credit portion of the entry to "Various Accounts"). Omit the "$" sign in your response.
General Journal
Debit
Credit
Manufacturing Overhead
14,500
Various Accounts
14,500
(c)
Prepare the journal entry to close the Manufacturing Overhead account directly to Cost of Goods Sold at the end of the period. Omit the "$" sign in your response.
General Journal
Debit
Credit
Manufacturing Overhead
500
Cost of Goods Sold
500
Newton Corporation uses a job order costing system and allocates manufacturing overhead at a rate of $25 per machine hour. During the period, the company used 600 machine hours and actually incurred manufacturing overhead costs of $14,500.