Question: The following transactions were incurred by Whooley Fabricators during January

The following transactions were incurred by Whooley Fabricators during January, the first month of its fiscal year.
Requirements
1. Record the proper journal entry for each transaction.
a. $205,000 of materials were purchased on account.
b. $174,000 of materials were used in production; of this amount, $146,000 was used on specific jobs.
c. Manufacturing labour and salaries for the month totalled $210,000. $200,000 of the total manufacturing labour and salaries was traced to specific jobs, while the remainder was indirect labour used in the factory.
d. The company recorded $16,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $14,000.
e. $56,000 of manufacturing overhead was allocated to specific jobs.
2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much?



Sale on SolutionInn
Sales2
Views162
Comments
  • CreatedApril 30, 2015
  • Files Included
Post your question
5000