Remaining Time 1 hour 48 minutes 56 seconds Question Complet

Remaining Time: 1 hour, 48 minutes, 56 seconds Question Completion Status QUESTION Waido Manfacturing Company employs a job order cost accounting system and keeps perpetual inventory necords The following transactions occurred in October 2018 Direct materialis requistioned daing October 540 000 120 89 64 000 Job 34 Job? 2 Direct labor Incured and charged to jolbes duing Octber Job 34 3 Mandacturingove head was appliedtojabs worked on using a predetermined ovehead rate based on 75% of d ect labor costs 5 Job 33 consisting of 1,000 units and Job 35 consisting of 200 units wae completed during October a) Prepare joumal enties to necord the above transactions Use the space bar, NOT the tab key to properly format your entries 4 Actual manufacturing ovehead costs incumed during Octaber amounted to $132,000 ) Answer the illowing queutions MUST show computations to secelive cedit 1 How much manufacturing overhead was applied to Job 35 during Octobe? 2 Compute the unit cost of Jobs 33 and 3 3 What is the balance in Work in Process Inventory atthe nd of Octobesh Determine if manucing ovehead was under or over applied during October How much? DOLL

Solution

(a) No. Account Titles and Explanation Debit Credit 1 Work in Process Inventory $        120,000 Raw Materials Inventory $        120,000 2 Work in Process Inventory $        160,000 Factory Labor $        160,000 3 Work in Process Inventory $        120,000 Manufacturing Overhead $        120,000 4 Manufacturing Overhead $        132,000 Cash/Payables $        132,000 5 Finished Goods Inventoy Work in Process Inventory [Job 33 $76,000; Job 35 $69,000—see (b) 2] (b) 1 $30,000 ($40,000 × 75%) 2 Unit cost: Job 33, $152; Job 35, $590 Job 33 Job 35 Direct materials $          40,000 $          48,000 Direct labor              64,000              40,000 Overhead applied              48,000              30,000 Total cost            152,000            118,000 Units ÷ 1000 ÷ 200 Unit cost 152 590 3 Work In Process Inventory is $130,000 and consists of work performed on Job 34 Job 34 Direct materials $          32,000 Direct labor              56,000 Overhead applied              42,000 Total cost $        130,000 4 Manufacturing overhead costs were underapplied by $12,000 during the month Actual manufacturing overhead            132,000 Manufacturing overhead applied            120,000 Underapplied overhead              12,000