E3-26A Record journal entries (Learning Objectives 2, 3, 5, & 6)

The following transactions were incurred by Jackson Fabricators during January, the first month of its fiscal year.

Requirements 1. Record the proper journal entry for each transaction.

a. $195,000 of materials was purchased on account.

b. $194,000 of materials was used in production; of this amount, $167,000 was used on specific jobs.

c. Manufacturing labor and salaries for the month totaled $260,000. A total of

$215,000 of manufacturing labor and salaries was traced to specific jobs, and the remainder was indirect labor used in the factory.

d. The company recorded $17,000 of depreciation on the plant and plant equipment.

The company also received a plant utility bill for $9,000.

e. $87,000 of manufacturing overhead was allocated to specific jobs.

f. The company received bill for website services for $3,000.

2. By the end of January, was manufacturing overhead overallocated or underallocated?

By how much?