the following information is taken from the accounts of fasgrow company the entries 3597420
The following information is taken from the accounts of FasGrow Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year.
Manufacturing Overhead Work in Process
(a) 353,000 (b) 429,000 Bal. 105,600 (c) 780,500 210,100
Bal. 76,000 115,100
Finished Goods Cost of Goods Sold
Bal. 145,000 (d) 827,500 (d) 827,500
The overhead that had been applied to production during the year is distributed among the ending balances in the accounts as follows:
Work in process, ending $ 55,770
Finished goods, ending 111,540
Cost of goods sold 261,690
Overhead applied $ 429,000
For example, of the $79,300 ending balance in work in process, $55,770 was overhead that had been applied during the year.
1. Identify the reasons for entries (a) through (d)
2. Assume that the company closes any balance in the manufacturing overhead account directly to cost of goods sold. Prepare the necessary journal entry.
Assume instead that the company allocates any balance in the manufacturing overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the necessary journal entry, with supporting computations.