E327A similar to 1 More Info The following transactions were

E3-27A (similar to) 1 More Info The following transactions were incurred by Jackson Fabricators during January, the first month of its fiscal year. (Click the icon to view the transactions.) Requirements 1. Record the proper journal entry for each transaction 2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much? $185.000 of materials was purchased on account. $158,000 of materials was used in production; of this amount, $149,000 was used on specific jobs. Manufacturing labor and salaries for the month totaled $240,000. A total of $175,000 of manufacturing labor and salaries was traced to specific jobs, and the remainder was indirect labor used in the factory. The company recorded $20,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for $6,000 which will be paid at a later date. a. b. a. $185,000 of materials was purchased on account. Record the entry. (Record debits first, then credits. Exclude ec. Journal Entry Date Accounts Debit Credit d. e. $85,000 of manufacturing overhead was allocated to specific jobs. f. The company received a bill for CAD design services for $1.000. Print Done Choose from any list or enter any number in the input fields and then click Check Answer

Solution

Journal entry :

2. Actual manufacturing overhead = (9000+65000+26000) = 100000

Allocated overhead = 85000

Under allocated overhead = 100000-85000 = 15000

Date	accounts	Debit	credit
a	Raw material a/c	185000
	Account payable a/c		185000
b.	Work in process a/c	149000
	Manufacturing overhead a/c	9000
	Raw material a/c		158000
c	Work in process a/c	175000
	Manufacturing overhead a/c	65000
	Wages payable a/c		240000
d	manufacturing overhead	26000
	Accumlated dep		20000
	Utilities payable		6000
e	Work in process a/c	85000
	Manufacturing overhead		85000
f	Design service fees a/c	1000
	Account payable		1000