Magoro,Inc

question 32

Essay

Magoro,Inc.has two processes-Coloring Department and Mixing Department.The company 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,the company 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 the company follows a perpetual inventory system and process costing?

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Definitions:

Favorite Bundle

A term in economics, particularly in consumer theory, referring to the combination of goods and services that maximizes a consumer's utility or satisfaction given their budget constraints.

Indifference Curves

A graphical representation of different bundles of goods between which a consumer is indifferent, showing combinations that give the consumer the same level of satisfaction.

Bundle

A set of goods or services that are sold or consumed together as a single package.

Constants

Fixed values in equations and calculations that do not change.