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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Assume Chan Company incurs actual manufacturing overhead costs of $470,000 and applies overhead of $510,000 for the year. Account balances are as follows: WIP inventory, $25,000; finished goods inventory, $25,000; and cost of goods sold, $50,000.
1. Is overhead overapplied or underapplied? Explain your answer.
2. Make the journal entry to close the manufacturing overhead account assuming the balance is immaterial.
3. Make the journal entry to close the manufacturing overhead account assuming the balance is material.
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