Michael Paints Has Two Processes-Coloring Department and Mixing Department

question 3

Essay

Michael Paints has two processes-Coloring Department and Mixing Department. Michael sold 450 gallons on account at $110 per gallon. The total cost of processing was $385,000 for 5,500 gallons of paint. Throughout the year, Michael used a predetermined overhead allocation rate to allocate $80,000 and $90,000 of indirect costs to the Coloring Department and Mixing Department, respectively. The actual overhead costs incurred amounted to $150,000 at the end of the year. What are the journal entries to record the sale of goods and the adjustment for over/underallocated manufacturing overhead at the end of the year if Michael follows a process costing system?

---

Definitions:

Deferred

Postponed or delayed to a later time or date.

Detailed View

A presentation or display mode that shows in-depth information, often with more complexity and detail than an overview.

Categories

Groupings or classifications into which items, information, or concepts are organized based on shared characteristics or criteria.

Assigned Task

A task or job that has been allocated to a particular person or group for completion.