Answer Happy

QUESTION 2 MyGame Station Sdn Bhd makes gaming devices using latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Machine hours 22,500 RM320,000 Manufacturing overhead cost During the year 2020, a surplus of gaming devices on the market resulted in cutting back production. The company's cost records revealed the following actual cost and operating data for the year: Machine hours 25,000 RM385,000 Manufacturing overhead cost Inventories at year-end: Raw Materials RM12,000 RM40,000 Work in process (includes overhead applied of RM12,000) Finished goods (includes overhead applied of RM40,000) Cost of goods sold (includes overhead applied of RM152,000) RM150,000 RM400,000 REQUIRED: (d) Prepare journal entry to record the underapplied or overapplied overhead computed in (c).