Question

Need parts A to E. Also requirement 2. thanks.

a. $200,000 of materials were purchased on account. b. $194,000 of materials were used in production; of this amount, $162,000 was used on specific jobs. Manufacturing labour and salaries for the month totalled $240,000. A total of $190,000 of manufacturing labour and salaries was traced to specific jobs, while the remainder was indirect labour used in the factory. d. The company recorded $29,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $13,000. e. $118,000 of manufacturing overhead was allocated to specific jobs.

Answer 1

Ans;

Journal Entries
Event	Particulars	Debit	Credit
a	Raw material inventory Dr	$200,000.00
	Accounts Payable		$200,000.00
	(To record purchase of raw material)
b	Work In Process Dr	$162,000.00
	Manufacturing overhead Dr	$32,000.00
	Raw material inventory		$194,000.00
	(To record raw material used in production)
c	Work In Process Dr	$190,000.00
	Manufacturing overhead Dr	$50,000.00
	Wages payable		$240,000.00
	(Being factory wages assigned to production)
d	Manufacturing overhead Dr	$42,000.00
	Accumulated depreciation - Equipment		$29,000.00
	Utilities payable		$13,000.00
	(To record overhead incurred)
e	Work In Process Dr	$118,000.00
	Manufacturing Overhead		$118,000.00
	(To apply overhead)

Req 2:

During January actual manufacturing overhead cost totalled $124,000.(32000+50000+42000) By the end of January, a total of $118,000 had been allocated to jobs. Therefore manufacturing overhead had been under allocated by $6,000