Chapter 17: 24E-e (page 945)

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
e. Recorded manufacturing overhead: depreciation on plant, $18,000; plant insurance (previously paid), $1,500; plant property tax, $3,900 (credit Property Tax Payable).

Short Answer

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Date	Particulars	Debit ($)	Credit ($)
	Manufacturing overhead	23,400
	Accumulated depreciation		18,000
	Prepaid plant insurance		1,500
	Property tax payable		3,900

Step by step solution

Step-by-Step Solution:Step 1: Depreciation

Depreciation is defined as the reduction in the book value of the fixed assets of the company. It is recorded as an indirect expense in the income statement.

Recording of manufacturing overhead in the books of the company

The manufacturing overhead are recorded as by debiting the manufacturing overhead account and by crediting the accumulated depreciation, prepaid plant insurance and the property tax payable account.

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Estimated manufacturing overhead cost for the year	$125,000
Estimated direct labor cost for the year	78,125
Actual manufacturing overhead cost for the year	116,000
Actual direct labor cost for the year	67,000

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
e. Recorded manufacturing overhead: depreciation on plant, \(18,000; plant insurance (previously paid), \)1,500; plant property tax, $3,900 (credit Property Tax Payable).

Short Answer

Step by step solution

Step-by-Step Solution:Step 1: Depreciation

Recording of manufacturing overhead in the books of the company

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Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Influences On Business

Financial Performance

Business Operations

Strategic Analysis

Introduction to Business

Managers

Study anywhere. Anytime. Across all devices.

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.e. Recorded manufacturing overhead: depreciation on plant, \(18,000; plant insurance (previously paid), \)1,500; plant property tax, $3,900 (credit Property Tax Payable).

Short Answer

Step by step solution

Step-by-Step Solution:Step 1: Depreciation

Recording of manufacturing overhead in the books of the company

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Influences On Business

Financial Performance

Business Operations

Strategic Analysis

Introduction to Business

Managers

Study anywhere. Anytime. Across all devices.

Question: Journalize the following transactions for Marge’s Sofas. Explanations are not required.
e. Recorded manufacturing overhead: depreciation on plant, \(18,000; plant insurance (previously paid), \)1,500; plant property tax, $3,900 (credit Property Tax Payable).