Assignment:
During April, Pam Lee Company works on two jobs: Numbers 101 and 102. Summary data concerning these jobs are as follows:
Manufacturing Costs Incurred
Purchased S68;000 of raw materials on account.
Factor y labor of S100,000 plus 56000 employer payroll taxes.
Manufacturing overhead exclusive of indirect materials and indirect labor of $72,500.
Assignment of Costs
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Direct materials:
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Job 101436,000, Job 102-530,000
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Indirect materials:
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$4,000
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Direct labor:
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Job 101468,000, Job 102-534,500
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Indirect labor:
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$3,500
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Manufacturing overhead rate 70% of direct labor costs.
Job 101 was completed and sold on account for S184,000. Job 102 was only partially completed
Instructions
1. Journalize the April transactions in the sequence followed in the chapter.
2. What was the amount of under- or overapplied manufacturing overhead?