Jan. 11: Purchased leather materials for bags on account for $76,000 Accounts payable $ 76,000 Raw Materials $ 76,000 Jan 14: Issued materials ($43,500) to production which included leather materials ($40,000) to specific jobs and bag eleaning materials ($3,500) to general pro Work in Progress 43,500 Raw materials $ 40,000 Manufacturing Overhead $ 3,500 24 Jan 21: Payroll costs were incurred as follows: $18,000 for stitching assembly workers, S9,000 for factory supervisors, $15,000 for salespersons. Work in Progress $ 18,000 Manufacturing Overhead $ 9,000 Selling expense $ 15,000 Salaries payable ###### Jan 31: Recorded depreciation: $1,200 for production building and $1,800 for office building. Manufacturing Overhead $ 1,200 Depreciation Expense 1,800 Accumulated depreciation 3,000 2$ Jan 31: Applied manufacturing overhead at a rate of 25% of direct material cost used in production. What is the amount of overapplied or underapplied manufacturing overhead related to the above transactions? Select one

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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fill in the missing T accounts
Jan. 11: Purchased leather materials for bags on account for $76,000
Accounts payable
$76,000
Raw Materials
$ 76,000
Jan 14: Issued materials ($43,500) to production which included leather materials ($40,000) to specific jobs and bag cleaning materials ($3,500) to general product
Work in Progress
Raw materials
Manufacturing Overhead
$ 3,500
2$
43,500
$ 40,000
Jan 21: Payroll costs were incurred as follows: $18,000 for stitching assembly workers, $9,000 for factory supervisors, $15,000 for salespersons.
Selling expense
$ 15,000
Salaries payable
Work in Progress
$ 18,000
Manufacturing Overhead
9,000
2$
######
Jan 31: Recorded depreciation: $1,200 for production building and $1,800 for office building.
Manufacturing Overhead
$ 1,200
Depreciation Expense
Accumulated depreciation
2$
1,800
3,000
Jan 31: Applied manufacturing overhead at a rate of 25% of direct material cost used in production.
7.
What is the amount of overapplied or underapplied manufacturing overhead related to the above transactions?
9
Select one
-2
Transcribed Image Text:Jan. 11: Purchased leather materials for bags on account for $76,000 Accounts payable $76,000 Raw Materials $ 76,000 Jan 14: Issued materials ($43,500) to production which included leather materials ($40,000) to specific jobs and bag cleaning materials ($3,500) to general product Work in Progress Raw materials Manufacturing Overhead $ 3,500 2$ 43,500 $ 40,000 Jan 21: Payroll costs were incurred as follows: $18,000 for stitching assembly workers, $9,000 for factory supervisors, $15,000 for salespersons. Selling expense $ 15,000 Salaries payable Work in Progress $ 18,000 Manufacturing Overhead 9,000 2$ ###### Jan 31: Recorded depreciation: $1,200 for production building and $1,800 for office building. Manufacturing Overhead $ 1,200 Depreciation Expense Accumulated depreciation 2$ 1,800 3,000 Jan 31: Applied manufacturing overhead at a rate of 25% of direct material cost used in production. 7. What is the amount of overapplied or underapplied manufacturing overhead related to the above transactions? 9 Select one -2
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Manufacturing Overhead (Over/Under-applied)=Actual Manufacturing Overhead-Applied Manufacturing Overhead

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