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The Robinson Corporation manufactures automobile parts. During the year, the company sold $5,700,000 of parts that had a cost of $3,400,000. At year end, these are the balances for cost of goods sold and its manufacturing overhead accounts:
| Cost of goods sold | $3,400,000 | |
| Manufacturing overhead allocated | $1,200,000 | |
| Manufacturing overhead control | $2,095,000 |
What would be the correct journal entry to close out the overhead accounts assuming that the
write −of to cost of goods sold approach is used?
Expert Answer
Under applied amount = Actual Amount – Allocated Amount
= 2095000 – 1200000
= 895000
| Particulars | Debit | Credit |
| Cost of goods sold | 895000 | |
| To Manufacturing Overhead Control | 895000 |
