Preparing journal entries—manufacturing overhead Blue Ridge Mountain Manufacturing had the following transactions related to manufacturing overhead for the year: Incurred manufacturing overhead costs $5,000 in indirect materials $12,500 in indirect labor (credit Wages Payable) $30,600 in machinery depreciation $20,400 in other indirect costs that were paid in cash Allocated manufacturing overhead (use a compound entry) $30,000 to the Mixing Department $37,000 to the Packaging Department Requirements Prepare the journal entries for Blue Ridge Mountain Manufacturing. Determine the amount of overallocated or under-allocated manufacturing overhead by posting the transactions to the Manufacturing Overhead account. Assume the balance in Manufacturing Overhead on January 1 is $0. Prepare the adjusting entry.
Preparing journal entries—manufacturing overhead Blue Ridge Mountain Manufacturing had the following transactions related to manufacturing overhead for the year: Incurred manufacturing overhead costs $5,000 in indirect materials $12,500 in indirect labor (credit Wages Payable) $30,600 in machinery depreciation $20,400 in other indirect costs that were paid in cash Allocated manufacturing overhead (use a compound entry) $30,000 to the Mixing Department $37,000 to the Packaging Department Requirements Prepare the journal entries for Blue Ridge Mountain Manufacturing. Determine the amount of overallocated or under-allocated manufacturing overhead by posting the transactions to the Manufacturing Overhead account. Assume the balance in Manufacturing Overhead on January 1 is $0. Prepare the adjusting entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Preparing
Blue Ridge Mountain Manufacturing had the following transactions related to manufacturing overhead for the year:
Incurred
- $5,000 in indirect materials
- $12,500 in indirect labor (credit Wages Payable)
- $30,600 in machinery
depreciation - $20,400 in other indirect costs that were paid in cash
Allocated manufacturing overhead (use a compound entry)
- $30,000 to the Mixing Department
- $37,000 to the Packaging Department
Requirements
- Prepare the journal entries for Blue Ridge Mountain Manufacturing.
- Determine the amount of overallocated or under-allocated manufacturing overhead by posting the transactions to the Manufacturing Overhead account. Assume the balance in Manufacturing Overhead on January 1 is $0. Prepare the
adjusting entry.
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