Question

Rogers Manufacturing's overhead at year-end was underapplied by $5,800, a small amount given the firm's size. The year-end journal entry to record this amount would include:

Answer 1

Answer:

Date           Account Title and Explanation          Debit     Credit

XXXX          Cost of goods sold                            $5,800

                     To manufacturing overhead                            $5,800

             (Entry for unapplied overhead transfer to cost of goods sold)