Selected account balances of Samaritan Company for 2016 are as follows:
Work in Process $35,000 Debit
Finished Goods $65,000 Debit
Cost of Goods Sold $100,000 Debit
Factory Overhead $22,000 Debit
Required:
a. Were factory overhead costs underapplied or overapplied in 2016? Explain.
b. Prepare the journal entry to dispose of the factory overhead balance assuming the amount is immaterial.
c. Prepare the journal entry to dispose of the factory overhead balance using the allocation method.

Question

Quizplus · Accepted Answer

The Answer of Selected account balances of Samaritan Company for 2016 are as follows:
Work in Process $35,000 Debit
Finished Goods $65,000 Debit
Cost of Goods Sold $100,000 Debit
Factory Overhead $22,000 Debit
Required:
a. Were factory overhead costs underapplied or overapplied in 2016? Explain.
b. Prepare the journal entry to dispose of the factory overhead balance assuming the amount is immaterial.
c. Prepare the journal entry to dispose of the factory overhead balance using the allocation method.

Selected Account Balances of Samaritan Company for 2016 Are as Follows