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Q. 11SE

Horngren'S Financial And Managerial Accounting
Found in: Page 940

Short Answer

Justice Company’s Manufacturing Overhead account is given below. Use this informationto prepare the journal entry to adjust for overallocated or underallocatedoverhead.

Manufacturing overhead




Debit ($)

Credit ($)

Cost of goods sold


Manufacturing overhead


See the step by step solution

Step by Step Solution

Step 1: Overheads

Overhead expenses means the cost that are not related to labor, direct material, or production.They are more static costs and pertains to general business of the company.

Step 2: Underallocated overhead amount

The manufacturing overhead of the company is underallocated because the allocated amount of overhead is less than the actual overhead by the amount of $1,000.


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