Question - Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $187,000. Estimated direct labor cost was $465,630 for 18,700 hours.
Actual costs for the most recent month are summarized here:
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Item Description
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Total Cost
|
|
Direct labor (1,870 hours)
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$46,564
|
|
Indirect costs
|
|
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Indirect labor
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2,500
|
|
Indirect materials
|
3,370
|
|
Factory rent
|
3,290
|
|
Factory supervision
|
4,750
|
|
Factory depreciation
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5,720
|
|
Factory janitorial work
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1,290
|
|
Factory insurance
|
1,850
|
|
General and administrative salaries
|
4,170
|
|
Selling expenses
|
5,310
|
Required: Journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Record the application of manufacturing overhead to production.
Record the actual manufacturing overhead cost incurred.
Record the transfer of manufacturing overhead account balance to cost of goods sold.