The Ledger Accounts of the Flex Gym at June 30

question 67

Essay

The ledger accounts of the Flex Gym at June 30 2016 are shown below:
Instructions
Prepare a trial balance with the ledger accounts arranged in the proper financial statement order. Include the appropriate heading.

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Definitions:

Factory Overhead

All indirect costs, including indirect materials, labor, and expenses, incurred during the manufacturing process.

Machine Hours

A measure of production time or operation, referring to the total hours a machine is used or operates within a given period.

Overapplied Amount

This term refers to a situation where the allocated or applied costs in cost accounting exceed the actual costs incurred.

Factory Overhead Rate

A cost allocation rate used in manufacturing to assign estimated overhead costs to production activities or output, based on a predetermined formula.