Record journal entries (Learning Objectives 3, 4)

The following transactions were incurred by Dutch Fabricators during January, the first month of its fiscal year. Record the proper journal entry for each transaction.

1. $190,000 of materials were purchased on account.

2. $174,000 of materials were used in production; of this amount, $152,000 was used on specific jobs.

3. Manufacturing labor and salaries for the month totaled $225,000.

4. $190,000 of the total manufacturing labor and salaries was traced to specific jobs.

5. The company recorded $20,000 of depreciation on the plant and plant equip¬ ment. The company also received a plant utility bill for $10,000.

6. $81,000 of manufacturing overhead was allocated to specific jobs.

7. By the end of January, was manufacturing overhead overallocated or underallo¬ cated? By how much?