Required information The following information applies to th

Required information [The following information applies to the questions displayed below.] The following information pertains to Trenton Glass Works for the year just ended Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 435,000 Actual manufacturing overhead: Depreciation Property taxes Indirect labor Supervisory salaries Utilities Insurance Rental of space Indirect material (see data below) $232,000 20,000 81,000 201,000 59,000 31,000 301,000 77,000 Indirect material: Beginning inventory, January 1 Purchases during the year Ending inventory, December 3.1 47,000 94,000 64,000 3. Prepare a journal entry to close out the Manufacturing Overhead account into Cost of Goods Sold. (Round intermediate calculations to 2 decimal places. If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.)

Solution

Predetermined overhead rate = Budgeted manufacturing overhead/Budgeted direct labor hours = 997500/75000= $13.3 per DLH Manufacturing overhead applied = 80000*13.3= 1064000 Actual manufacturing overhead = 232000+20000+81000+201000+59000+31000+301000+77000= 1002000 Overapplied manufacturing overhead = 1064000-1002000 = 62000 1 Manufacturing overhead 62000         Cost of goods sold 62000