Reference no: EM132610795

Michael Company uses job-order costing. The company has gathered the following data:

Direct materials purchased for cash                  $60,000

Direct materials requisitioned                            $50,000

Direct labor costs incurred                            $90,000

Factory overhead costs incurred                    $60,000

Cost of goods completed                               $180,000

Cost of goods sold                                          $170,000

Sales for cash                                                      $300,000

Factory overhead applied                                             ?

Factory overhead costs are applied at 90% of direct labor costs.

Required:

Question A) Prepare the required journal entries for the above transactions.

Question B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.