Homework $20-4$

Materials purchased on account $$195,000,$ and factory wages incurred $$100,600.$

Materials requisitioned and factory labor used by jobs for production:

Manufacturing overhead costs incurred on account $$40,000.$

Depreciation on factory equipment $$16,550.$

Depreciation on the company's office building was $$14,300.$

Manufacturing overhead rate is $72\%$ of direct labor cost.

Jobs completed during the quarter: $A20,A21,$ and $A23.$

Determine if overhead is over or under applied and make the required entry.

Prepare journal entries for the above transactions: