1. The following transactions were incurred by Gregor Fabricators during January, the first month of its fiscal year.

Requirements

1. 1. Record the proper journal entry for each transaction.
   1. a. $205,000 of materials was purchased on account.
   2. b. $170,000 of materials was used in production; of this amount, $152,000 was used on specific jobs.
   3. c. Manufacturing labor and salaries for the month totaled $255,000. $215,000 of the total manufacturing labor and salaries was traced to specific jobs, and the remainder was indirect labor used in the factory.
   4. d. The company recorded $25,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $12,000 which will be paid at a later date.
   5. e. $79,000 of manufacturing overhead was allocated to specific jobs.
   6. f. The company received a bill for CAD design services for $1,000.
2. 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much?