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At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $2,260, Garcia Company—credit $1,011. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. a) Shimeca Company: Debit Cost of Goods Sold $2,260; Credit Manufacturing Overhead $2,260 b) Garcia Company: Debit Manufacturing Overhead $1,011; Credit Cost of Goods Sold $1,011 c) Shimeca Company: Debit Manufacturing Overhead $2,260; Credit Cost of Goods Sold $2,260 d) Garcia Company: Debit Cost of Goods Sold $1,011; Credit Manufacturing Overhead $1,011
At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $2,260, Garcia Company—credit $1,011. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. a) Shimeca Company: Debit Cost of Goods Sold $2,260; Credit Manufacturing Overhead $2,260 b) Garcia Company: Debit Manufacturing Overhead $1,011; Credit Cost of Goods Sold $1,011 c) Shimeca Company: Debit Manufacturing Overhead $2,260; Credit Cost of Goods Sold $2,260 d) Garcia Company: Debit Cost of Goods Sold $1,011; Credit Manufacturing Overhead $1,011
Final answer:Adjusting entries for Shimeca and Garcia companies involves transferring themanufacturingoverhead to the cost of goods sold. For Shimeca Company, it would be a Debit to Cost of Goods Sold and a Credit to Manufacturing Overhead of $2,260. For Garcia Company, it would be a Debit to Manufacturing Overhead and a Credit to Cost of Goods Sold of $1,011.Explanation:The student's question to prepare theadjustingentry for Shimeca Company and Garcia Company involves understanding the concept of Manufacturing Overhead and Cost of Goods Sold (COGS). Manufacturing overhead refers to all the indirect factory-related costs that are incurred while manufacturing a product. COGS is the accumulative total of direct costs involved in producing goods sold by a company. This includes direct labor, direct materials, and manufacturing overhead.For the Shimeca Company with a debit balance of $2,260 in manufacturing overhead, the adjusting entry to move to COGS will be:Debit Cost of Goods Sold $2,260; Credit Manufacturing Overhead $2,260.Garcia Company has a credit balance in manufacturing overhead of $1,011. Hence, the adjusting entry will be:Debit Manufacturing Overhead $1,011; Credit Cost of Goods Sold $1,011.Learn more about Manufacturing Overhead and Cost of Goods Sold here:brainly.com/question/30514438#SPJ11...