## Question

###### The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials 5,050...

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials 5,050 5,250 Work in Process 4,150 Beg Bal 9,100 Beg Bal 22,250 6,250 8,550 8,350 Beg Bal Finished Goods 2,250 22,250 20,450 8,350 Manufacturing Overhead 2,850 3,550 3,250 Wages & Salaries Payable 20,450 Beg Bal Cost of Goods Sold 20,450 Beg Bal 2,550 12,100 The manufacturing overhead was:

Multiple Choice О. $3,250 overapplied O $1,300 underapplied О O $3,250 underapplied O $1,300 overapplied

## Answers

Manufacturing overhead

2850 8350 3550 3250 Total 9650 9650 So $1300 is underapplied manufacturing overhead.

Manufacturing overhead is debited when expenses are incurred to recognise the incurrence. When the expenses are allocated to the asset, the work in process inventory, the expense account manufacturing overhead is credited.

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