Question

Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $172,040. Estimated direct labor cost was $437,580 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,870 hours) $ 43,759 Indirect costs Indirect labor 2,530 Indirect materials 3,340 Factory rent 3,360 Factory supervision 4,710 Factory depreciation 5,780 Factory janitorial work 1,160 Factory insurance 1,820 General and administrative salaries 4,140 Selling expenses 5,300 Required: 1., 2. & 3-a. Prepare the journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Actual costs for the most recent month are summarized here: Total Cost $43,759 a Item Description Direct labor (1,870 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision Factory depreciation Factory janitorial work Factory insurance General and administrative salaries Selling expenses 2,530 3,340 3,360 4, 710 5, 780 1,160 1,820 4,140 5,300 Required: 1., 2. & 3-a. Prepare the journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit 1 a ✓ 17,204 Work in Process Inventory Manufacturing Overhead 17,204 3 Cost of Goods Sold Manufacturing Overhead

Answer 1

Transaction	General Journal	Debit	Credit
a.	Work in Process Inventory	17,204
	Manufacturing Overhead		17,204
b.	Cost of Goods Sold	5,496
	Manufacturing Overhead		5,496
	(22,700 - 17,204)
	Working
	Estimated manufacturing Overhead	$172,040
	Estimated direct labor hours	18,700
	Predetermined overhead rate	$9.20
	Overhead applied =	Predetermined overhead rate × actual machine hours
		$9.20 x 1,870
		$17,204
	Actual Manufacturing Overhead	22,700
	(2,530 + 3,340 + 3,360 + 4,710 + 5,780 + 1,160 + 1,820)