Husky Inc. uses a normal job costing system and applies overhead on the basis of direct labour hours. The company estimated that total overhead costs for 20XX would be $180,000 and it would use 15,000 direct labour hours.

During the eleven months from January 1 to November 30, 20XX, actual direct labour hours were 13,750. Husky pays $18.00 per Direct Labour Hour.

At December 1 20XX Husky had three jobs in process:

Job Number	815	817	822
Direct Materials (DM)	$ 1,400	$ 2,500	$ 1,700
Direct Labour (DL)	1,200	2.400	600
Allocated Overhead (MOH)	600	1,350	450
Total Costs	$3,200	$ 6,250	$ 2,750

During the month of December, the following costs were incurred by Husky for the following five jobs:

Job Number	815	817	822	823	824
DM	$ 500	$ 700	$ 1,300	$ 1,250	$ 1,500
DL	$ 900	$ 1,440	$ 3,060	$ 3,960	$ 5,940

Husky incurred the following costs in the month of December. These costs have not yet been recorded in the General Ledger of the company.

Direct Material Purchases	$ 7,800		Advertising Expense	$ 5,200
Factory Depreciation	$ 2,490		Factory Maintenance	$ 1,500
Factory Utilities	$ 1,800		Factory Supplies	$ 1,800
Indirect Factory Salaries	$ 2,200		Sales Salaries	$ 9,700
Administrative Salaries	$ 3,450		Interest Expense	$ 1,400

Additional Information:

• MOH Control was $ 195,010 at November 30
• There were no jobs in Finished Goods inventory at December 1
• Jobs 815, 822, 823, and 824 were completed in December
• Job 824 is the only job in Finished Goods Inventory at December 31
• Husky prices all jobs at 200% of total manufacturing cost

Required:

1. What is the overhead rate used by Husky? (2 points)
2. What is the value of Work in Process at December 31, 20XX? (6 points)
3. What is the value that would have been transferred from Work in Process to Finished Goods inventory during December? (6 points)
4. What is the value that would have been transferred from Finished Goods Inventory to Cost of Goods Sold during December? (6 points)
5. Assuming that any over or under allocated Overhead is written off to Cost of Goods Sold, and that Husky only makes the adjustment at year end, what is the necessary entry for Husky at December 31, 20XX to close its overhead accounts? (5 points)