Selected Account Balances of Samaritan Company for 2016 Are as Follows

question 45

Essay

Selected account balances of Samaritan Company for 2016 are as follows:
Work in Process $35,000 Debit
Finished Goods $65,000 Debit
Cost of Goods Sold $100,000 Debit
Factory Overhead $22,000 Debit
Required:
a. Were factory overhead costs underapplied or overapplied in 2016? Explain.
b. Prepare the journal entry to dispose of the factory overhead balance assuming the amount is immaterial.
c. Prepare the journal entry to dispose of the factory overhead balance using the allocation method.

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Definitions:

Congressional Agreement

A consensus reached among members of the United States Congress on a legislative matter.

Outlays

Expenses incurred or amount spent for a particular purpose.

Federal Government Budget Surplus

Occurs when a government's income exceeds its spending during a fiscal year.

Aggregate Demand

The aggregate need for products and services throughout an economy, specified at a consistent price level and during a certain time.