Question

In the month of November, Terpak Industries had the following overhead costs. 1. Property taxes, $22,500 ($10,000 for offices, $12,500 for factory) 2. Insurance, $14,380 ($3,140 for office building insurance, $7,240 for accidental injury insurance on factory workers, $4,000 for factory building insurance) 3. Utilities, $1,843 ($1,200 for factory, $643 for offices) 4. Depreciation, $47,000 ($15,400 for factory equipment, $19,000 for factory building, $12,600 for office building) How much will Terpak debit their Manufacturing Overhead account on November 30

Answer 1

The amount Terpak will debit their Manufacturing Overhead account on November 30 is $59,340.

Step-by-step explanation:

Manufacturing overhead can be described as all indirect costs that are incurred by a firm during the production process.

Manufacturing overhead is also known as factory overhead and it can be calculated by considering all the costs related to the factory.

For this question, the amount Terpak will debit their Manufacturing Overhead account on November 30 can therefore be calculated as follows:

Particulars Amount ($)

Factory tax 12,500

Factory accidental injury insurance 7,240

Factory building insurance 4,000

Factory utilities 1,200

Depreciation of factory equipment 15,400

Depreciation of factory building 19,000

Total manufacturing overhead 59,340

Therefore, the amount Terpak will debit their Manufacturing Overhead account on November 30 is $59,340.