Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations.
(1) Direct materials requisitioned for use in production, $154,000
(2) Indirect materials requisitioned for use in production, $45,000
(3) Direct labor wages incurred, $94,000
(4) Indirect labor wages incurred, $119,000
(5) Depreciation recorded on factory equipment, $44,000
(6) Additional manufacturing overhead costs incurred, $83,000
(7) Manufacturing overhead costs applied to jobs, $236,000
(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000
Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.

-The manufacturing overhead was:
A) $10,000 Underapplied
B) $10,000 Overapplied
C) $55,000 Underapplied
D) $55,000 Overapplied

Question

Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations.
(1) Direct materials requisitioned for use in production, $154,000
(2) Indirect materials requisitioned for use in production, $45,000
(3) Direct labor wages incurred, $94,000
(4) Indirect labor wages incurred, $119,000
(5) Depreciation recorded on factory equipment, $44,000
(6) Additional manufacturing overhead costs incurred, $83,000
(7) Manufacturing overhead costs applied to jobs, $236,000
(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000
Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.
  
-The manufacturing overhead was:
A) $10,000 Underapplied 
B) $10,000 Overapplied 
C) $55,000 Underapplied 
D) $55,000 Overapplied

Quizplus · Accepted Answer

11ea7761_18f6_77e6_81a5_fb2df9abbd3b_TB2580_00 The overhead is $55,000 underapplied because the actual manufacturing overhead cost incurred of $291,000 exceeds the manufacturing overhead applied of $236,000 by $55,000.

Dagostino Corporation Uses a Job-Order Costing System