Cost of goods sold, This question belongs to Accounting and

Cost of goods sold

Reference no: EM13824838

Question-

During the year, XYZ allocated $435,000 of manufacturing overhead cost into the production process. XYZ incurred actual manufacturing overhead costs during the year of $425,000. Relevant ending balances before adjusting for any over/under-allocated manufacturing over head are:

Cost of Goods Sold (COGS) $680,000
WIP $40,000
Finished Goods $80,000

REQUIRED:

1. Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold.

2. Prepare a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending account balances.

Additional information-

This question belongs to Accounting and it discuss about Preparing a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold.

Reference no: EM13824838

Questions Cloud

Traditional view with modern outlook : The capital of a company must be preserved - this has been the traditional view of company law. In modern times this rule has been modified. Explain this historical rule and how it has been modified.

Determine the actual amount of manufacturing : Determine the beginning balance in the direct materials inventory account. Determine the actual amount of manufacturing overhead incurred during the year

Holding shares and debentures in a company : Mary holds shares in Unity Ltd. Unity Ltd is now offering debentures to raise further capital. Advise Mary on the legal differences between her shareholding and any debentures she may purchase?

Calculate the number of civilizations : Calculate estimate for the number of civilizations with which we could potentially communicate.

Cost of goods sold : This question belongs to Accounting and it discuss about Preparing a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold

Review of case asic v vizard 2005 fca 1037 : Explain the reasons why the defendant in ASIC v Vizard [2005] FCA 1037 was banned from being a director.

Company secretary capacity to bind : This question belongs to the Law as well as it explains about section 204E which discusses regarding the company secretary's capacity to bind the company or impose liability upon the company. The difference between 204E as well as common law has b..

Write a response paper about story the bet by anton chekhov : Write a response paper about the story The Bet by Anton Chekhov.

Role of value engineering and value analysis : Role Of Value Engineering And Value Analysis In Operations Management

User Account

All Pages