At the beginning of the year, Tea Tree Manufacturing had the following account balances: The following additional details are provided for the year:
$$\begin{array} { | l | r | }
\hline \text { Direct materials placed in production } & \$ 83,300 \
\hline \text { Direct labor incurred } & 191,100 \
\hline \text { Manufacturing overhead incurred } & 300,200 \
\hline \begin{array} { l }
\text { Manufacturing overhead allocated to } \
\text { production }
\end{array} & 297,500 \
\hline \text { Cost of jobs completed and transferred } & 500,300 \
\hline
\end{array}$$ The unadjusted balance in the Manufacturing Overhead account is a ________.

Question

At the beginning of the year, Tea Tree Manufacturing had the following account balances:      The following additional details are provided for the year:
$$\begin{array} { | l | r | } 
\hline \text { Direct materials placed in production } & \$ 83,300 \
\hline \text { Direct labor incurred } & 191,100 \
\hline \text { Manufacturing overhead incurred } & 300,200 \
\hline \begin{array} { l } 
\text { Manufacturing overhead allocated to } \
\text { production }
\end{array} & 297,500 \
\hline \text { Cost of jobs completed and transferred } & 500,300 \
\hline
\end{array}$$ The unadjusted balance in the Manufacturing Overhead account is a ________.

Quizplus · Accepted Answer

Since manufacturing overhead is usually a debit balance, an unadjusted balance of $2,700 as a credit would indicate that too little overhead had been allocated to jobs during the year. Therefore, the correct answer choice is (C) debit of $2,700.

At the Beginning of the Year, Tea Tree Manufacturing Had