Give the journal entry to close Factory Overhead Control

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Question - The following information is available concerning the inventory and cost of goods sold accounts of XO Manufacturing Co. at the end of the year.

 

Work in Process

Finished Goods

Cost of Sales

Direct Material

P2,000

P6,000

P12,000

Direct Labor

2,000

16,000

32,000

Applied Factory Overhead

2,000

16,000

32,000

Year-end balance

P6,000

P38,000

P76,000

Applied factory overhead has already been closed to Factory Overhead Control.

Required - Give the journal entry to close Factory Overhead Control, assuming:

(a) Underapplied factory overhead of P6,000 is to be allocated to inventories and cost of goods sold in proportion to the balances in the accounts

(b) Overapplied factory overhead of P6,000 is to be allocated to inventories and cost of goods sold in proportion to the balances of the accounts.

(c} Underapplied factory overhead of P6,000 is to be allocated to inventories and cost of goods sold in proportion to the amounts of applied factory overhead contained in those accounts.

Reference no: EM132778455

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