Recording Actual Manufacturing Overhead The cost of certain overhead items for the month was as follows:

Payment for these items was as follows:

a. The company is required to pay for one year’s rent in advance. The total for one year is $46,800; this amount was paid three months ago. The $3,900 amount represents the rent applicable for this month.

b. The company is required to pay for six months’ insurance in advance. The total for six months is $13,500; this amount was paid two months ago. The $2,250 amount represents the insurance applicable for this month.

c. Depreciation is recognized on a straight-line basis.

d. The repairs were performed in the current month. The company will pay for the repairs next month.
Make the necessary journal entries to record these items.

Transcribed Image Text:

Rent for production facility. Insurance premium for the month Monthly depreciation on equipment Repairs on equipment $3,900 2,250 4,750 5,200