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E3-39B Record manufacturing overhead (Learning Objectives 5 & 6)
Refer to the data in Exercise E3-38B. Patel Foundry’s accountant found an error in the
expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $405,000, not the $495,000 it had originally reported. The unadjusted
Cost of Goods Sold balance at year-end was $620,000.
Requirements
1. Prepare the journal entry (entries) to record manufacturing overhead costs incurred.
2. Prepare the journal entry to record the manufacturing overhead allocated to jobs in
production.
3. Use a T-account to determine whether manufacturing overhead is underallocated or
overallocated, and by how much.
4. Record the entry to close out the underallocated or overallocated manufacturing
overhead.
5. What is the adjusted ending balance of Cost of Goods Sold
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E3-39B Record manufacturing overhead (Learning Objectives 5 & 6)
Refer to the data in Exercise...
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