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Kirkaid Company recorded the following transactions for the just completed month

ID: 2507781 • Letter: K

Question

Kirkaid Company recorded the following transactions for the just completed month: a. $84,000 in raw materials were requisitioned for use in production. Of this amount, $72,000 was for direct materials and the remainder was for indirect materials. b. Total labor wages of $108,000 were incurred. Of this amount, $105,000 was for direct labor and the remainder was for indirect labor. c. Additional actual manufacturing overhead costs of $197,000 were incurred. d. A total of $218,000 in manufacturing overhead was applied to jobs.

Explanation / Answer

Overhead used in production:

12,000 for indirect materials

3,000 for indirect labor

197,000 other OH costs incurred

Total = 212,000

Amount applied = 218,000

218,000