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Business, 19.02.2020 03:16, 19thomasar
Aspen Company estimates its manufacturing overhead to be $642,500 and its direct labor costs to be $514,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $190,124. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $360,580. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $104,896. Actual manufacturing overhead for year 2 was $805,500. Manufacturing overhead is applied on the basis of direct labor costs. Required:
Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold.
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Aspen Company estimates its manufacturing overhead to be $642,500 and its direct labor costs to be $...
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