1. Ikerd Company Expected overhead cost for the year: $300,000. Actual overhead cost incurred: $322,000 Estimated machine usage: 125,000 hours. Actual machine usage 130,000 hours. (a.) Compute the manufacturing overhead rate for the year. $300,000 (Estimated annual Overhead Cost)/125,000 (Expected Annual Activity) = 2.4 (predetermined rate). The manufacturing overhead rate for the year is $2.40 per machine hour. (b.) What is the amount of under or over-applied overhead at December 31? Actual machine hours used: 130,000 x 2.4= $312,000 312,000-322,000= (10,000) under-applied (c.) Prepare the adjusting entry to assign the under- over-applied for the year to cost of goods sold. December 31. Cost of Goods Sold (to transfer under-applied to COGS) Manufacturing overhead 10,000 10,000 2. Crawford Company; Journalize the incurred entries: (1) Raw Materials inventory Accounts Payable (2) Work In Process Inventory Manufacturing Overhead Raw Material Inventory (3) Factory Labor Factory Wages Payable Employer Payroll Taxes Payable (4) Work In Process Inventory Manufacturing Overhead Factory Labor (5) Manufacturing Overhead Accounts Payable (6) Manufacturing Overhead Accumulated Depreciation (7) Work In Process Inventory Manufacturing Overhead (8) Finished Goods Inventory Work In Process Inventory (9) Accounts Receivable Sales Revenue (10)Cost of Goods Sold Finished Goods Inventory 46,300 46,300 29,200 6,800 36,000 59,900 51,000 8,900 54,000 5,900 59,900 80,500 80,500 8,100 8,100 81, ...
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