Alberta Corporation uses a job-order costing system. The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $170,000(2) Indirect materials requisitioned for use in production, $11,000(3) Direct labor wages incurred, $105,000(4) Indirect labor wages incurred, $103,000(5) Depreciation recorded on factory equipment, $38,000(6) Additional manufacturing overhead costs incurred, $63,000(7) Manufacturing overhead costs applied to jobs, $200,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $450,000Required:a. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.?Work In Process?Bal.$35,000????????Manufacturing
Overhead???????????????b. Determine the underapplied or overapplied overhead for the month.
What will be an ideal response?
a.
| ? | Work In Process | |||
| ? | Bal. | 35,000 | (8) | 450,000 |
| ? | (1) | 170,000 | ? | ? |
| ? | (3) | 105,000 | ? | ? |
| ? | (6) | 200,000 | ? | ? |
| ? | Bal. | 60,000 | ? | ? |
| ? | Manufacturing Overhead | |||
| ? | (2) | 11,000 | (7) | 200,000 |
| ? | (4) | 103,000 | ? | ? |
| ? | (5) | 38,000 | ? | ? |
| ? | (6) | 63,000 | ? | ? |
| ? | ? | 215,000 | ? | 200,000 |
| ? | ? | ? | Bal. | 15,000 |
b. The overhead is $15,000 underapplied because the actual manufacturing overhead cost incurred of $215,000 exceeds the manufacturing overhead applied of $200,000 by $15,000
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