Kirkaid Company recorded the following transactions for the just completed month
ID: 2547618 • Letter: K
Question
Kirkaid Company recorded the following transactions for the just completed month:
$86,000 in raw materials were requisitioned for use in production. Of this amount, $73,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $110,000 were incurred. Of this amount, $106,000 was for direct labor and the remainder was for indirect labor.
Additional actual manufacturing overhead costs of $198,000 were incurred.
Kirkaid Company recorded the following transactions for the just completed month:
Explanation / Answer
Actual manufacturing overhead costs=(86000-73000)+(110000-106000)+198000= $215000 Underapplied overhead for the month=219000-215000 = $4000
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