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:

Spring Brake Chamber

A component in vehicle braking systems that uses a spring mechanism to apply force to the brakes, particularly for parking and emergency brakes.

C-Inspections

A detailed level of inspection, often referring to a thorough examination of aircraft components but may apply to other fields for comprehensive checks.

Service Air Application

The use of compressed air in various maintenance and repair operations, often related to vehicle systems.

Rotor Runout

The measurement of how much a brake rotor deviates from a perfectly flat orientation as it rotates.