Easterling Corporation uses a job-order costing system. The following data relate to the just completed month's operations.?Beginning balance in Work in Process$43,000(1)Raw materials purchased on account$172,000(2)Direct materials requisitioned for use in production$125,000(3)Indirect materials requisitioned for use in production$19,000(4)Direct labor wages incurred$78,000(5)Indirect labor wages incurred$102,000(6)Depreciation recorded on factory equipment$36,000(7)Additional manufacturing overhead costs incurred$77,000(8)Manufacturing overhead costs applied to jobs$231,000(9)Cost of jobs completed and transferred from Work in Process to Finished Goods$402,000Required:a. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts
below.
b. Determine the underapplied or overapplied overhead for the month.
What will be an ideal response?
a.
b. The overhead is $3,000 underapplied because the actual manufacturing overhead cost incurred of $234,000 exceeds the manufacturing overhead applied of $231,000 by $3,000.
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