Chapter 3, Problem 3.44BE

Record journal entries (Learning Objectives 2, 3, 5, & 6)

The following transactions were incurred by Mooney Fabricators during January, the first month of its fiscal year.

Requirements

1. 1. Record the proper journal entry for each transaction.
   1. a. $210,000 of materials were purchased on account.
   2. b. $178,000 of materials were used in production; of this amount, $143,000 was used on specific jobs.
   3. c. Manufacturing labor and salaries for the month totaled $245,000. A total of $220,000 of manufacturing labor and salaries was traced to specific jobs, while the remainder was indirect labor used in the factory.
   4. d. The company recorded $16,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $8,000 which will be paid at a later date.
   5. e. $74,000 of manufacturing overhead was allocated to specific jobs.
2. 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much?