Michael Company uses job-order costing. The company has gatheredthe following data:
Direct materials purchased forcash $60,000
Direct materialsrequisitioned $50,000
Direct labor costsincurred $90,000
Factory overhead costsincurred $60,000
Cost of goodscompleted $180,000
Cost of goodssold $170,000
Sales forcash $300,000
Factory overheadapplied ?
Factory overhead costs are applied at 90% of direct laborcosts.
Required:
- A) Prepare the required journal entries for the abovetransactions.
- B) Prepare the journal entry to dispose of the overheadvariance using the immediate write-off method.
