On June 1, Dalton Productions had beginning balances as shown in the T-accounts below. During June, the following transaction took place:
June 2: Issued $2000 of direct materials and $800 of indirect materials to production.
What was the balance in the Manufacturing Overhead account following this transaction?

Question

On June 1, Dalton Productions had beginning balances as shown in the T-accounts below.     During June, the following transaction took place:
June 2: Issued $2000 of direct materials and $800 of indirect materials to production.
What was the balance in the Manufacturing Overhead account following this transaction?

Quizplus · Accepted Answer

The transaction is related to materials issued to production, which affects the Raw Materials Inventory and Manufacturing Overhead accounts. The entry to record this transaction would be:

Debit Direct Materials Inventory: $2,000
Debit Indirect Materials Inventory: $800
Credit Raw Materials Inventory: $2,800
Credit Manufacturing Overhead: $800

Therefore, the balance in the Manufacturing Overhead account would be the beginning balance of $41,000 plus the credit of $800, resulting in a balance of $41,800.

On June 1, Dalton Productions Had Beginning Balances as Shown