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Aspen Company estimates its manufacturing overhead to be $631,250 and its direct labor costs to be...

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Accounting

Aspen Company estimates its manufacturing overhead to be$631,250 and its direct labor costs to be $505,000 for year 2.Aspen worked on three jobs for the year. Job 2-1, which was soldduring year 2, had actual direct labor costs of $195,600. Job 2-2,which was completed, but not sold at the end of the year, hadactual direct labor costs of $326,000. Job 2-3, which is still inwork-in-process inventory, had actual direct labor costs of$130,400. Actual manufacturing overhead for year 2 was $801,900.Manufacturing overhead is applied on the basis of direct laborcosts.

Required:

Prepare an entry to allocate over- or underapplied overhead toWork in Process, Finished Goods and Cost of Goods Sold. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field.)

  • Record the allocation of over- or underapplied overhead.

Note: Enter debits before credits.

TransactionGeneral JournalDebitCredit
1

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