Q5SE

Question

Oak Outdoor Furniture manufactures wood patio furniture. If the company reportsthe following costs for June 2018, what is the balance in the Manufacturing Overheadaccount before overhead is allocated to jobs? Assume that the labor has been incurred,but not yet paid. Prepare journal entries for overhead costs incurred in June.

Wood	$270,000
Nails, glue, stain	18,000
Depreciation on saws	5,300
Indirect manufacturing labor	45,000
Depreciation on delivery truck	1,700
Assembly-line worker’s wages	51,000

Step-by-Step Solution

Verified

Answer

The balance in the manufacturing overhead account is $52,000.

Date	Particulars	Debit ($)	Credit ($)
	Manufacturing overhead	52,000
	Depreciation on saws		5,300
	Indirect manufacturing labor		45,000
	Depreciation on delivery truck		1,700

1Manufacturing overhead

Manufacturing overhead means the aggregate of all the indirect cost which are incurred while manufacturing a product.

2Calculation of manufacturing overhead

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