The following transactions were incurred by Gregor Fabricators during January, the first month of its fiscal year.
Question:
The following transactions were incurred by Gregor Fabricators during January, the first month of its fiscal year.
Proper journal entry for each transaction
a.$205,000 of materials was purchased on account
b.$170,000 of materials was used in production, of this amount, $152,00 was used on specific jobs.
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.
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.
e.$79,000 of manufacturing overhead was allocated to specific jobs.
f.The company received a bill for CAD design services for $1,000.
By the end of January, was manufacturing overhead overallocated or underallocated?By how much?