Question

On June 1, Westbrook Productions had beginning balance of $41,000 in their Manufacturing Overhead account. During the month, the following transactions took place: June 2: Issued $2800 of direct materials and $500 of indirect materials to production. June 13: Incurred $6600 of direct factory labor cost and $15,000 of indirect factory labor cost. What was the balance in the Manufacturing Overhead account following these transactions? Group of answer choices $41,500 $58,800 $56,000 $56,500

Answer 1

Answer:

$56,500

Explanation:

Manufacturing overhead refers to indirect factory-related costs incurred when a product is manufactured.

To calculate the balance in the Manufacturing Overhead account, we will add the beginning balance to the indirect materials to production and indirect factory labor cost.

June 2: Issued $500 of indirect materials to production.

June 13: Incurred $15,000 of indirect factory labor cost.

= $41,000 + $500 + $15,000

= $56,500

The balance in the Manufacturing Overhead account following these transactions will be $56,500.