1Centore Inc has provided the following data for the month o

1.Centore Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Manufacturing overhead for the month was underapplied by $3,000.

The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

The work in process inventory at the end of June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

2.

Bosshart Inc. has provided the following data for the month of May. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Manufacturing overhead for the month was underapplied by $6,000.

The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for May would include credit or debit to Work in Process of how much?

	Work In Process	Finished Goods	Cost of Goods Sold	Total
Direct materials	$	650		$	7,590		$	24,860		$	33,100
Direct labor		2,180			20,700			67,800			90,680
Manufacturing overhead applied		930			7,130			22,940			31,000
Total	$	3,760		$	35,420		$	115,600		$	154,780

Solution

Answer

Total

Work in Progress

Finished Goods

Cost of Goods Sold

Manufacturing overhead applied (A)

31000

930

7130

22940

% of total (B)

100%

3%

23%

74%

Underapplied overhead

3000

[3000 x 3%] 90

[3000 x 23%] 690

[3000 x 74%] 2220

Work in Progress

Finished Goods

Cost of Goods Sold

Total

Direct Materials

650

7590

24860

33100

Direct Labor

2180

20700

67800

90680

Manufacturing Overhead applied

930

7130

22940

31000

Underapplied

90

690

2220

3000

TOTAL

3850

36110

117820

157780

-----The Answer is the work in progress inventory at the end of May after allocation of Underapplied overhead would be $3850

Working ------------------

Total

Work in Progress

Finished Goods

Cost of Goods Sold

Manufacturing overhead applied

88000

9680

9680

68640

% of total

100%

11%

11%

78%

Underapplied overhead

6000

660

660

4680

Work in Progress

Finished Goods

Cost of Goods Sold

Total

Direct Materials

10670

12000

81120

103790

Direct Labor

11630

15000

101400

128030

Manufacturing Overhead applied

9680

9680

68640

88000

Underapplied

660

660

4680

6000

TOTAL

32640

37340

255840

325820

---Since the overhead were UNDER applied, the journal entry would be:

Work In progress Dr $660
manufacturing Overhead $660

Hence, the answer is Work in Progress will be DEBITED by $660

	Total	Work in Progress	Finished Goods	Cost of Goods Sold
Manufacturing overhead applied (A)	31000	930	7130	22940
% of total (B)	100%	3%	23%	74%
Underapplied overhead	3000	[3000 x 3%] 90	[3000 x 23%] 690	[3000 x 74%] 2220