Use the information below to answer the following question(s).
Because the Beckworth Company used a budgeted indirect cost allocation rate for its manufacturing operations,the amount allocated ($190,000)was different from the actual amount incurred ($175,000).These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts.
Before disposition of under/overallocated overhead,the following information was available:

-What is the journal entry Beckworth Company should use to write-off the difference between allocated and actual overhead directly to cost of goods sold?

Question

Use the information below to answer the following question(s).
Because the Beckworth Company used a budgeted indirect cost allocation rate for its manufacturing operations,the amount allocated ($190,000)was different from the actual amount incurred ($175,000).These were the respective ending balances in the Manufacturing Overhead Allocated and Manufacturing Overhead control accounts.
Before disposition of under/overallocated overhead,the following information was available:
 
-What is the journal entry Beckworth Company should use to write-off the difference between allocated and actual overhead directly to cost of goods sold?

Quizplus · Accepted Answer

The journal entry to write off the difference between allocated and actual overhead directly to cost of goods sold is to debit Cost of Goods Sold for the amount of the difference ($15,000) and credit Manufacturing Overhead Allocated for the same amount. The correct journal entry is Option E: 
Cost of Goods Sold 15,000
Manufacturing Overhead Allocated 15,000

Use the Information Below to Answer the Following Question(s)