At the beginning of 2012, Conway Manufacturing Company had the following account balances: $$\begin{array}{l}
\text { During the year, the following transactions took place: }\
\begin{array} { l r }
\text { Direct materials placed in production: } & \$ 80,000 \
\text { Direct labor incurred: } & \$ 190,000 \
\text { Manufacturing overhead incurred } & \$ 300,000 \
\text { Manufacturing overhead allocated to production: } & \$ 295,000 \
\text { Jobs completed with cost of : } & \$ 500,000
\end{array}
\end{array}$$
-
After these transactions have been recorded, the preliminary balance in the Manufacturing overhead account is a:

Question

At the beginning of 2012, Conway Manufacturing Company had the following account balances:  $$\begin{array}{l}
\text { During the year, the following transactions took place: }\
\begin{array} { l r } 
\text { Direct materials placed in production: } & \$ 80,000 \
\text { Direct labor incurred: } & \$ 190,000 \
\text { Manufacturing overhead incurred } & \$ 300,000 \
\text { Manufacturing overhead allocated to production: } & \$ 295,000 \
\text { Jobs completed with cost of : } & \$ 500,000
\end{array}
\end{array}$$
- 
After these transactions have been recorded, the preliminary balance in the Manufacturing overhead account is a:

Quizplus · Accepted Answer

The preliminary balance in the Manufacturing overhead account is a debit of $5,000, indicating that overhead costs have been under-applied.

At the Beginning of 2012, Conway Manufacturing Company Had the Following