Wang's Corporation Applies Overhead Based Upon Machine-Hours Required:
A

question 86

Essay

Wang's Corporation applies overhead based upon machine-hours.Budgeted factory overhead was $325,000 and budgeted machine-hours were 13,000.Actual factory overhead was $312,330 and actual machine-hours were 12,660.Before disposition of over- or underapplied overhead,the cost of goods sold was $725,000 and ending inventories were as follows:
$$\begin{array} { | l | r | } \hline \text { MIP } & \$ 150,000 \\\hline \text { Finished goods } & \underline { 375,000 } \\\hline \text { Total } & \$ 525,000 \\\hline\end{array}$$
Required:
a.Compute the amount of overhead applied to production.b.Prepare the journal entry to dispose of the over/under-applied overhead using the write-off to cost of goods sold approach.c.Prepare the journal entry to dispose of the over/under-applied overhead using the proration approach.

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Definitions:

Report Talk

Talk focused on sharing practical or statistical information.

Conversational Ritual

Repeated and customary verbal interactions and practices that form a significant part of social communication.

Report Talk

A style of communication focusing on exchanging information, facts, and arguments, often used in formal or professional settings.

Factual and Statistical Information

Data and details based on real occurrences and quantitative measurements, used to support arguments, analyses, or research findings.