Question

The following account balances has been extracted from Jimbob Co.'s general ledger: 8 $200,000 $10,000 $50,000 $10,000 Direct materials used in production Depreciation factory building Depreciation factory equipment Depreciation sales department automobiles Direct wages factory employees Sales department salaries and commissions Factory manager's salary Utility costs factory Utility costs sales office $200,000 $150,000 $50,000 $50,000 $20,000 What was the total of manur yerhead?

Answer 1

Manufacturing Overhead
Particulars	Amount $
Depreciation for factory building	10,000.00
Depreciation for factory Equipment	50,000.00
Factory managers Salary	50,000.00
Utility costs factory	50,000.00
Manufacturing Overhead	160,000.00

Manufacturing overhead costs represent all such costs which are incurred in production of goods excluding direct materials and direct labor. Sum of direct materials and manufacturing overhead costs equals conversion costs.