Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. applied vs actual manufacturing overhead (10 point

Applied vs Actual Manufacturing Overhead (10 points). Ivvavik Manufacturing Corporation applies manufacturing overhead based on...

80.2K

Verified Solution

Question

Accounting

image

Applied vs Actual Manufacturing Overhead (10 points). Ivvavik Manufacturing Corporation applies manufacturing overhead based on direct labor cost at rate of 50%. During the year total manufacturing overhead incurred was $525,000. At the end of the year, Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $150,000, $250,000, and $600,000, respectively, of direct labor incurred during the current year. a. Is overheard under-applied or over-applied and by what amount? b. Is Cost of Goods Sold overestimated or underestimated? C. Is Net Income overestimated or underestimated? d. Prepare the journal entry to record the disposition of the over or under application of manufacturing overhead, assume the amount is considered insignificant: Debit Credit e. Prepare the journal entry to record the disposition of the over or under application of manufacturing overhead, assume the amount is considered significant: Debit Credit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

explain briefly regarding the ethical reaponsibilities financial managers have in relation to the firms stakeholders( consider questions...

Biology
1.2K views

Compare and contrast (that means tell me how they are similar AND how they are different) gene...

Electrical Engineering
1.2K views

You have to answers the following questions on the subject of : Building Automation Systems (BAS) 1....

Calculus
1.2K views

At 2:00 p.m. a car's speedometer reads 30 mi/h. At 2:10 p.m. it reads 50...

Accounting
1.2K views

QUESTION 4. Explain why the following stakeholders use accounting information. a. Creditors (2 marks) b....

Accounting
1.2K views

The following balances were taken from the books of Blue Corp, on December 31, 2025....

Accounting
1.2K views

When is the financial risk by far the most critical element to consider

Accounting
1.2K views

What do you understand by coporate profits?

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Tracy...

Accounting
1.2K views

Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: Sales...

Finance
1.2K views

calculations. Round your answer to the nearest cent

Finance
1.2K views

A coupon bond paying semiannual interest is reported as having an ask price of 119%...