Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories.
(1) Raw materials purchased for cash, $96,000
(2) Direct materials requisitioned for use in production, $69,000
(3) Indirect materials requisitioned for use in production, $22,000
(4) Direct labor wages incurred and paid, $129,000
(5) Indirect labor wages incurred and paid, $16,000
(6) Additional manufacturing overhead costs incurred and paid, $121,000
(7) Manufacturing overhead costs applied to jobs, $163,000
(8) All of the jobs in process were completed.
(9) All of the completed jobs were shipped to customers.
(10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Enter the transactions in the T-accounts below and then answer the following questions.

-The manufacturing overhead is:
A) $26,000 Underapplied
B) $4,000 Underapplied
C) $4,000 Overapplied
D) $26,000 Overapplied

Question

Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories.
(1) Raw materials purchased for cash, $96,000
(2) Direct materials requisitioned for use in production, $69,000
(3) Indirect materials requisitioned for use in production, $22,000
(4) Direct labor wages incurred and paid, $129,000
(5) Indirect labor wages incurred and paid, $16,000
(6) Additional manufacturing overhead costs incurred and paid, $121,000
(7) Manufacturing overhead costs applied to jobs, $163,000
(8) All of the jobs in process were completed.
(9) All of the completed jobs were shipped to customers.
(10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Enter the transactions in the T-accounts below and then answer the following questions.
      
-The manufacturing overhead is:
A) $26,000 Underapplied 
B) $4,000 Underapplied 
C) $4,000 Overapplied 
D) $26,000 Overapplied

Quizplus · Accepted Answer

11ea7761_18f7_3b3e_81a5_d7582bc39ddd_TB2580_00 11ea7761_18f7_3b3f_81a5_df757b764963_TB2580_00 11ea7761_18f7_3b40_81a5_a145374ecb58_TB2580_00 11ea7761_18f7_6251_81a5_592f82d62b46_TB2580_00 11ea7761_18f7_6252_81a5_2166414d36c9_TB2580_00 The manufacturing overhead is overapplied because the actual manufacturing overhead costs incurred of $159,000 is less than the manufacturing overhead cost applied of $163,000 by $4,000.

Leak Enterprises LLC Recorded the Following Transactions for the Just