Journal entry needed to close the overhead account


Task:

The records of Apex Corporation revealed the following data for the current year.

Work in Process $ 73,150
Finished Goods    115,000
Cost of Goods Sold    133,650
Direct Labor 111,600
Direct Material 84,200

Q1. Assume, for this question only, actual overhead is $98,700 and applied overhead is $93,250. Manufacturing overhead is:

Q2. Assume that Apex has under applied overhead of $37,200 and that this amount is material. What journal entry is needed to close the overhead account? (Round decimals to nearest whole percent.)

Q3. Assume that Apex has under applied overhead of $10,000 and that this amount is immaterial. What is the balance in Cost of Goods Sold after the under applied overhead is closed?

Q4. Assume that Apex has over applied overhead of $25,000 and that this amount is material. What is the balance in Cost of Goods Sold after the over applied overhead is closed?

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Accounting Basics: Journal entry needed to close the overhead account
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