At the beginning of 2015,Conway Manufacturing had the following account balances: Following additional details are provided for the year:

-The unadjusted balance in the Manufacturing Overhead account is a ________.

Question

At the beginning of 2015,Conway Manufacturing had the following account balances:  Following additional details are provided for the year:
 
-The unadjusted balance in the Manufacturing Overhead account is a ________.

Quizplus · Accepted Answer

The unadjusted balance in the Manufacturing Overhead account is a debit of $5,000 because the Manufacturing Overhead account has a beginning debit balance of $8,000, and during the year $295,000 of actual manufacturing overhead costs were incurred and debited to the account. However, only $298,000 ($300,000 estimated overhead costs - $2,000 estimated underapplied overhead) of overhead costs were allocated to production through the application of overhead to jobs, resulting in an underapplied overhead of $2,000. Therefore, the unadjusted balance in the Manufacturing Overhead account is a debit of $5,000 ($8,000 beginning debit balance - $2,000 underapplied overhead).

At the Beginning of 2015,Conway Manufacturing Had the Following Account