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Business, 19.10.2020 21:01 asher456581
Yarra Fabrication estimates that its manufacturing overhead will be $2,329,600 in year 1. It further estimates that direct material costs will amount to $1,456,000. Actual manufacturing overhead costs for the year were $2,470,000. Actual direct materials costs were $1,620,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates.
The total applied overhead for the year was $2,592,000. The balance in each of the inventory accounts is as follows.
Work-in-process inventory $489,500
Finished goods inventory $1,157,000
Cost of goods sold $7,253,500
Required:
Prepare an entry to allocate the over- or underapplied overhead
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Yarra Fabrication estimates that its manufacturing overhead will be $2,329,600 in year 1. It further...
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