Question

Return to question The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead 476,928 (6) 397,440 79,488 Bal. 738,000 Bal. (a) Bal. 654,000 Work in Process 14,560 (C) 284,500 88,500 397,440 47,000 Finished Goods 43,000 (d) 738,000 127,000 Bal. (b) Bal. Cost of Goods Sold 654,000 (d) The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending Finished Goods, ending Cost of Goods Sold Overhead applied $ 22,560 60,960 313,920 $ 397,440 For example, of the $47,000 ending balance in work in process, $22,560 was overhead that had been applied during the year.

Answer 1

Answer :-

1) Identify

a) Actual manufacturing overhead

b) Applied manufacturing overhead

c) Cost of goods manufactured

d) Cost of goods sold

2)

Adjusting entry

No	General Journal	Debit	Credit
	Cost of goods sold	$79,488
	Manufacturing overhead		$79,488

3)

Adjusting entry

No	General Journal	Debit	Credit
	work in process ($22,560/$397,440*$79,488)	$4,512
	Finished goods($60,960/$397,440*$79,488)	$12,192
	Cost of goods sold($313,920/$397,440*$79,488)	$62,784
	Manufacturing overhead		$79,488