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Journalize the following transactions for Betty\'s Benches. Explanations are not

ID: 2508763 • Letter: J

Question

Journalize the following transactions for Betty's Benches. Explanations are not required (Cilick the icon to view the transactions) Record debits first, then credits. Exclude explanations from any journal entries.) i More Info a. Incurred and paid Web site expenses, $2.200. b. Incurred manufacturing wages of S 14,000, 55% of which was drect labor and 45% of which was indirect labor. c. Purchased raw materials on account, $23,000 d. Used in production: direct materials, $8,500; indirect materials, 53,500 e. Recorded manufacturing overhead: depreciation on plant, $11,000: plant insurance (previously paid), $1,200: plant property tax, $4,400 (credit Property Tax Payable). f. Allocated manufacturing overhead to jobs, 150% of direct labor costs. g. Completed production on jobs with costs of $36,000. h. Sold inventory on account, $20,000; cost of goods sold, $10,000. i. Adjusted for overallocated or underallocated overhead Print Done

Explanation / Answer

Answer

I. Adjusted for overallocated or underallocated overhead:

Under allocated overhead = Actual manufacturing overhead - allocated manufacturing overhead

Under allocated overhead = [(14000*45%)+3500+11000+1200+4400] - 11550

Under allocated overhead =(6300+3500+11000+1200+4400) - 11550

Under allocated overhead =$14850

W.N.

allocated manufacturing overhead =Direct labor cost *150%

=(14000*55%) * 150%

=$11550

(If still you have any doubt please ask.your most welcome)

Date Particulars Dr Cr i. Cost of goods sold $14850 manufacturing overhead $14850 (To record manufacturing overhead adjusted for under allocated overhead)