LINK TO TEXT LINK TO TEXT Account Titles and Explanation Deb

LINK TO TEXT

LINK TO TEXT

Account Titles and Explanation

Debit

Credit

LINK TO TEXT

LINK TO TEXT

Open Show Work

Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client’s consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current year. Estimated overhead $990,000 Actual overhead $1,073,800 Estimated decorator hours 40,000 Actual decorator hours 40,200 The company uses Operating Overhead in place of Manufacturing Overhead.

Solution

1 Estimated overhead / Estimated decorator hours $990,000/40000 24.75 2 General Journal Debit Credit Work in process 994950 Manufacturing/ operating overhead 994950 40200*24.75 3 Actual overhead less applied overhead 1,073,800 - 994950 78850 under applied