On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below.
-Refer to the table above,During June, the following transactions took place:
June 2: Issued $2,400 of direct materials and $200 of indirect materials to production
June 13: Paid $7,500 of direct factory labor cost and $14,100 of indirect factory labor cost
Following these transactions, what was the balance in the Manufacturing Overhead account?

Question

On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below. 
-Refer to the table above,During June, the following transactions took place:
June 2: Issued $2,400 of direct materials and $200 of indirect materials to production
June 13: Paid $7,500 of direct factory labor cost and $14,100 of indirect factory labor cost
Following these transactions, what was the balance in the Manufacturing Overhead account?

Quizplus · Accepted Answer

To calculate the balance in the Manufacturing Overhead account, we need to add indirect materials and indirect factory labor, and subtract the amount of overhead applied to production.

Beginning balance in Manufacturing Overhead account = $52,000

June 2: Issued $200 of indirect materials to production
Manufacturing Overhead account balance = $52,200

June 13: Paid $14,100 of indirect factory labor cost
Manufacturing Overhead account balance = $66,300

Total indirect costs = $200 + $14,100 = $14,300

Overhead applied to production is not given, so we cannot subtract that amount.

Therefore, the balance in the Manufacturing Overhead account is $66,300. The correct answer is B.

On June 1, 2014, Dalton Productions Had Beginning Balances as Shown