1 BDP Company manufactures specialty furniture and uses a job costing system. At the beginning of 2029, the following estimates were provided for overhead costs and direct labour hours (the cost driver/allocation base): 2 3 Overhead costs Direct labour hours $420,000 60,000 4 5 The following are account balances as of December 31, 2019 and job information for January 2020: 7. 3 Jobs Balance, Dec. 31 January Costs Added Direct Direct Overhead materials labour $10,000 $15,500 $14,000 $16,200 $4,000 $5,400 Direct labour hours used in January 3,100 2,700 600 TT-2 TT-3 $12,000 $23,5001 $11,500 CT-4 $36,000 Actual manufacturing overhead costs incurred during January were: These costs will be paid for in February, 2020. TT-2 was started in December then completed, billed and delivered to the customer in January. TT-3 was started in December and completed in January. Job CT-4 was started in December but was still incomplete as of January 31, 2020. Required: nined overhead rate (POR) for the year. (2 marks) Actual manufacturing overhead costs incurred during January were: 5 These costs will be paid for in February, 2020. $36,000 6 TT-2 was started in December then completed, billed and delivered to the customer in January. TT-3 was started in December and completed in January. Job CT-1 was started in December but was still incomplete as of January 31, 2020. Required: 1. Calculate the company's predetermined overhead rate (POR) for the year. (2 marks) POR 2. Calculate the amount of overhead applied to each job in January. (3 marks) TT-2 TT-3 CT-4 Applied overhead Prepare the following journal entries for January. Debits must be recorded before credits (8 marks): To record the direct materials used in production. Debit Credit 29 30 31 Applied overhead 32 33 3. Prepare the following journal entries for January. Debits must be recorded before credits (8 mark 34 a. To record the direct materials used in production. 35 Debit Credit 36 37 38 39 40 b. To record direct labour used in production. 41 42 Debit 43 Credit 44 45 46 c. To record the actual manufacturing overhead costs incurred. 47 48 Debit Credit 49 50 51 overhead applied to production. F GE 40 b. To record direct labour used in production. 41 42 Debit Credit 43 44 45 46 c. To record the actual manufacturing overhead costs incurred. 47 48 Debit Credit 49 50 51 52 d. To record the overhead applied to production. 53 54 Debit Credit 55 56 57 4. Calculate the balances at January 31st for Work in Process, Finished Goods and cost of Goods Sold 58 adjusting for over- or under-applied overhead. (3 marks) 59 Total 60 Work in process 62 Finished goods 63 Cost of goods sold S8 4. Calculate the balances at January 31st for Work in Process, Finished Goods and Cost of Goods Sold adjusting for over-or under-applied overhead. (3 marks) 59 60 Total 61 Work in process 62 Finished goods 63 Cost of goods sold 64 65 5. Calculate the over or under-applied overhead for January (2 marks) 66 67 68 69 70 71 6. If the company followed IAS 2 for closing over or under-applied overhead, describe how the overhead would be treated. (2 marks) 72 73 based on Part 5 above 74 75 76