At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $2,150, Garcia Company—credit $997. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.

COGS   1,153 debit

    MO           1,153 credit

Explanation:

The manufacturing overhead debit represent the actual overhead

while the credit represent the applied overhead for the firm and charged into their product already.

At the end of the period, we adjust to match the applied against the actual overhead.

As we apply 997 while the actual cost was 2,150 we underapplied we must charge more cost to our product.

We credit the manufacturing overhead and post that cost against cost of good sold.

2,150 - 997 = 1,153

The adjusting entries should be:

December 31, adjusting entry Shimeca Company

Dr Cost of goods sold 2,150

    Cr Manufacturing overhead costs 2,150

December 31, adjusting entry Garcia Company

Dr Manufacturing overhead costs 997

    Cr Cost of goods sold 997

Both accounts (manufacturing overhead and cogs) are expense accounts that have debit balances, but manufacturing overhead is included under cogs and has to be closed against it at the end of the year.

answer; intensive use of a sales force and is relatively costly;

the amount of money you earn by working is your income.

the percentage of people actively looking for a job is called unemployment.