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Q5SE

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Horngren'S Financial And Managerial Accounting
Found in: Page 939

Short Answer

Oak Outdoor Furniture manufactures wood patio furniture. If the company reportsthe following costs for June 2018, what is the balance in the Manufacturing Overheadaccount before overhead is allocated to jobs? Assume that the labor has been incurred,but not yet paid. Prepare journal entries for overhead costs incurred in June.

Wood

$270,000

Nails, glue, stain

18,000

Depreciation on saws

5,300

Indirect manufacturing labor

45,000

Depreciation on delivery truck

1,700

Assembly-line worker’s wages

51,000

The balance in the manufacturing overhead account is $52,000.

Date

Particulars

Debit ($)

Credit ($)

Manufacturing overhead

52,000

Depreciation on saws

5,300

Indirect manufacturing labor

45,000

Depreciation on delivery truck

1,700

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Step by Step Solution

Manufacturing overhead

Manufacturing overhead means the aggregate of all the indirect cost which are incurred while manufacturing a product.

Calculation of manufacturing overhead

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