Reference no: EM132638114
Question - At the beginning of 2015, Conway Manufacturing had the following account balances:
Following additional details are provided for the year:
Direct materials placed in production $80,000
Direct labor incurred 190,000
Manufacturing overhead incurred 300,000
Manufacturing overhead allocated to production 295,000
Cost of jobs completed and transferred 500,000
Total revenue 750,000
Cost of goods sold 440,000
Requirements -
1. Prepare the journal entries for the usage of direct material, labor cost incurred, actual overhead incurred, allocation of overhead, completion of job, sale of products.
2. Compute total cost of the products produced
3. Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead. Prepare the journal entry to close the balance of manufacturing overhead account.
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