Ask Question
6 June, 02:30

Here is some basic data for Delta Manufacturing: Cost of materials purchases on account $ 77,000 Cost of materials requisitioned (includes $2,000 of indirect) 45,000 Direct labor costs incurred 80,000 Manufacturing overhead costs incurred, including indirect materials 98,000 Cost of goods completed 276,600 Cost of goods sold 149,000 Beginning raw materials inventory 19,000 Beginning work in process inventory 35,000 Beginning finished goods inventory 25,000 Predetermined manufacturing overhead rate (as % of direct labor cost) 120% The journal entry to record actual manufacturing overhead costs includes a

+2
Answers (1)
  1. 6 June, 04:11
    0
    Overheads $498,000 (debit)

    Cash $498,000 (credit)

    Explanation:

    First calculate the Amount of Actual overhead incurred (overheads are indirect manufacturing costs)

    Manufacturing overheads incurred = $498,000

    Journal Entry

    Overheads $498,000 (debit)

    Cash $498,000 (credit)

    This journal is different from that of recording applied overheads which is shown as follows:

    Work - In - Process $ 96,000 (debit)

    Overheads $ 96,000 (credit)

    Overheads amount = 80,000 * 120% = $ 96,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Here is some basic data for Delta Manufacturing: Cost of materials purchases on account $ 77,000 Cost of materials requisitioned (includes ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers