Cambridge Manufacturing Company applies manufacturing overhe

Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $290,000 and machine hours to be 14,500. Actual manufacturing overhead and machine hours were s$330,000 and 15,500, respectively Required 1. & 2. Prepare the journal entries for overhead. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.) View transaction list 1 Record the actual manufacturing overhead cost incurred. Record the application of manufacturing overhead to production 2 3 Record the transfer of manufacturing overhead account balance to cost of goods sold. Credit Note :·journal entry has been entered Record entry Clear entry View general journal

Solution

Journal entry :

Date	accounts & explanation	debit	credit
	Manufacturing overhead	330000
	Account payable		330000
	(To record actual manufacturing overhead)
	Work in process a/c (290000/14500)*15500	310000
	Manufacturing overhead		310000
	(To record applied manufacturing overhead)
	Cost of goods sold a/c	20000
	Manufacturing overhead a/c		20000
	(To record transfer of manufacturing overhead account to cost of goods sold)