Oak Outdoor Furniture manufactures wood patio furniture. If the company reports the following costs for June 2018,Wood $ 270,000Nails, glue, stain 18,000Depreciation on saws 5,300Indirect manufacturing labor 45,000Depreciation on delivery truck 1,700Assembly­line workers' wages 51,000What is the balance in the Manufacturing Overhead account before overhead is allocated to jobs? Assume that the labor has beenincurred, but not yet paid. Prepare journal entries for overhead costs incurred in June. What is the balance in the Manufacturing Overhead account before overhead is allocated to jobs?1. First, prepare an entry for the overhead costs for materials used.2. Next, prepare an entry for the overhead costs for labor incurred.3. Finally, prepare an entry for all other overhead costs.

0. Manufacturing Overhead account balance before allocation.

Every expense incurred that is not directly linked to manufacturing of wood patio furniture goes here.

Oak Outdoor Furniture Manufacturing Overhead  June 30

Nails, Glue, Stain18,000    

Depreciation on Saws5,300    

Indirect Manufacturing Labour45,000  

Balance$68,300

1. Journal entry for the overhead costs for materials used.

DR Manufacturing Overhead$18,000    

CR Raw material Inventory  $18,000

(To record cost of indirect materials used)

2. Journal entry for the overhead costs for labor incurred.

DR Manufacturing Overhead$45,000    

CR Wages Payable  $45,000

(To record cost of overhead labor costs incurred)

3. Journal entry for all other overhead costs.

DR Manufacturing Overhead$5,300    

CR Accumulated Depreciation  $5,300

(To record depreciation on saws)

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explanation:

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