The following transactions were incurred by Stoncius Fabricators during January,

Question

The following transactions were incurred by Stoncius Fabricators during January, the first month of its fiscal year. i (Click the icon to view the transactions) Requirements 1. Record the proper journal entry for each transaction 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much? a. $170,.000 of materials was purchased on account. Record the entry (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Credit a. Raw Materials Inventory Accounts Payable 170000 170000 b. $162,000 of materials was used in production, of this amount, $143,000 were used on speciffe obs. Record the entry. ournal Entry Date Accounts Debit Credit b. Work in Process Invento Manufacturing Overhead Raw Materials Inventory 143000 19000 162000 c. Manufacturing labor and salaries for the month totaled $220,000. A total of $200,000 of manufacturing labor and salaries was traced to specific jobs, and Journal Entry Date Accounts Debit Credit

Explanation / Answer

1)

2a)Actual overhead :68000                [19000+20000+17000+12000]

Allocated overhead : 62000

overhead is underallocated = 68000-62000 6000

Date Account title Debit credit c Work in process 200000 manufacturing overhead 20000 Factory labor 220000 d Manufacturing overhead 29000 Accumulated depreciation - -plant equipment 17000 Utility bill payable 12000 e work in process 62000 manufacturing overhead 62000 f design service expense 7000 Accounts payable 7000

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