Allocating manufacturing overhead Depreciation on manufacturing property, plant, and equipment was actually $550,000, not the $600,000 she originally reported. Unadjusted balances at the end of 2012 include:
|
Finished goods inventory |
$ 131,000 |
|
Cost of goods sold |
580,000 |
Requirements
1. Use a T account to determine whether manufacturing overhead is under allocated or over allocated, and by how much.
2. Prepare the journal entry to close out the under allocated or over allocated manufacturing overhead.
3. What is the adjusted ending balance of Cost of goods sold?