Author Question: Moira Company has just finished its first year of operations and must decide which method to use for ... (Read 52 times)

Coya19@aol.com · **on:** Mar 6, 2021

Moira Company has just finished its first year of operations and must decide which method to use for adjusting cost of goods sold. Because the company used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated ($435,000) to cost of goods sold was different from the actual amount incurred ($425,000).

Ending balances in the relevant accounts were:

Work-in-Process

$ 40,000

Finished Goods

80,000

Cost of Goods Sold

680,000

Required:

a.	Prepare a journal entry to write off the difference between allocated and actual overhead

directly to Cost of Goods Sold. Be sure your journal entry closes the related overhead accounts.

b.	Prepare a journal entry that prorates the write-off of the difference between allocated and

actual overhead using ending account balances. Be sure your journal entry closes the related overhead accounts.

braelync · **Reply #1 on:** Mar 6, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 64% of students answer this correctly