1- Storm Concert Promotions: Determine whether overhead is overapplied or underapplied. 2- Storm Concert Promotions: Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
3- Valle Home Builders: Determine whether overhead is overapplied or underapplied.
4- Valle Home Builders: Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

Storm Concert Promotions Valle Home Builders
Actual indirect materials costs $12,800 $6,800
Actual indirect labor costs $55,500 $47,000
Other overhead costs $17,100 $49,000
Overhead applied $91,600 $98,400

Answer and Explanation:

1. The overhead is overapplied or underapplied is shown below:-

Valle Home Storm:

Particulars                                    Amount

Indirect materials           $12,800 $91,600    Applied overhead

Indirect Labor                  $55,500

Other overhead costs       $17,100

                                           $85,400 $6,200  Over applied overhead

2. The Journal entry is shown below:-

Factory overhead Dr, $6,200  

      To Cost of goods sold $6,200

(Being overapplied overhead is recorded)

3. The overhead is overapplied or underapplied is shown below:-

Valle Home Builders:

Indirect materials             $6,800    $98,400 Applied overhead

Indirect Labor                   $47,000

Other overhead costs     $49,000

Underapplied overhead  $4,400

4. The Journal entry is shown below:-

Cost of goods sold Dr, $4,400

     To Factory overhead $4,400

(Being under applied is recorded)

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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