Fairfield Company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here: Item Direct materials. Indirect materials Hourly labor wages Factory supervision Production engineer Factory janitorial work Selling, general, and administrative salaries Other manufacturing overhead costs (factory rent, insurance, depreciation, etc.) Other selling, general, and administrative costs (office rent, insurance, depreciation, etc.) Required A Required B Description Used on Jobs 101 and 102 Used on multiple jobs 760 hours @ $27 per hour 190 hours for Job 101 = 350 hours for Job 102 = 220 hours for Job 103 = $ 5,130 9,450 5,940 View transaction list Total Cost $ 83,000 13,500 20,520 3,350 5,400 1,600 9,400 6,700 Required: 1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. 2. Indicate whether the entry in requirement 1 will increase or decrease Cost of Goods Sold. 4,200 Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Fairfield Company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here: Required: 1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. 2. Indicate whether the entry in requirement 1 will increase or decrease Cost of Goods Sold. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account feld. Journal entry worksheet Record the transfer of manufacturing overhead account balance to cost of goods sold. Note: Enter debits before credits
