1. Record the proper journal entry for each transaction.

a. $195,000 of materials was purchased on account.

b. $194,000 of materials was used in production; of this amount, $167,000 was used on specific jobs.

c. Manufacturing labor and salaries for the month totaled $260,000. A total of $215,000 of manufacturing labor and salaries was traced to specific jobs, and the remainder was indirect labor used in the factory.

d. The company recorded $17,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $9,000.

e. $87,000 of manufacturing overhead was allocated to specific jobs.

f. The company received bill for website services for $3,000. 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much?

By the end of January, was manufacturing overhead overallocated or underallocated? By how much?

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