Winston Manufacturing uses direct labor cost to apply overhead to its

Winston Manufacturing uses direct labor cost to apply overhead to its production. The budgeted direct labor cost and budgeted manufacturing overhead were $400,000 and $480,000, respectively. The following cost data were experienced last year: Material inventory, 1/1/04 $ 10,000 Material inventory, 12/31/04 2,000 Work-in-process, 1/1/04 12,000 Finished goods, 1/1/04 33,000 Finished goods, 12/31/04 23,000 Purchases of material 61,000 Direct labor incurred 45,000 Indirect material 13,000 Indirect labor 12,000 Other manufacturing overhead 20,000 Unadjusted cost of goods sold 170,000 1. Close the over/under applied overhead to cost of goods sold (journal entry).2. Prorate the over/under applied overhead to the proper accounts using the ending account balances for prorating (journal entry).3. Prepare the cost of goods manufactured statement.cost of goods manufactured statement.

3 Simple steps to get your paper done

Step 1

Step 2

Step 3

Place Order Down to work Paper is Ready!

Takes just a few minutes!

Best writer takes the order

Access via your account