1. Boeing Company manufactures batteries and uses job-order costing system. For the current year, the manager of the company estimated that the company would need so machine hour and incur a fixed manufacturing overhead cost $325.000 and a variable manufacturing overheat com of $75 per machine hour. Bacing Company had beginning inventory follows: Raw Material WIP Finished Goods $14.000 512.400 The following information relates to operation in the current year. The raw materials perchased include both direct and indirect matonals. Asume that all transactions were on account Purchase of Raw Materials 51516,000.00 % Direct and 30% tadirect) Raw material roquisitioned for the use in production Direct : S1070,000. Indirect : $230,000 Labour.com Dinoet : $33.5 per he. Indirect : 518 per te Salay for office employees Deprecation on Factory Building Depreciation on Corporate Building S180,000 Utility cost $100,000 (66% relates to factory and the test relates to corporate) Page 1 of 4 $15.000 Factory Machinery Maintenance Cost Advertising Expense Real $200,000 creates to factory and the rest relates to corporate ) Additional Information The direct labours worked a total (9.300 hown. The indirect labours worked for a total of 11.300 hours Manufacturing overhead was applied to production. The company received lower than expected onders during the year for which the machines ran for a total of 70.000 bow . During the year, a total of 46.000 units of batteries were manufactured and transferred to finished foods, out of which 41.000 were sold to customers at the cling price of 570 per battery Required: Use the information given above to write the appropriate journal entries for Blocing Company 20 mark) 1. Calculate whether the manufacturing overhead was over applied or under applied. Write the appropriate journal entry to record the overrunder applications marks) 1. Boeing Company manufactures batteries and uses job-order costing system. For the current year, the manager of the company estimated that the company would need so machine hour and incur a fixed manufacturing overhead cost $325.000 and a variable manufacturing overheat com of $75 per machine hour. Bacing Company had beginning inventory follows: Raw Material WIP Finished Goods $14.000 512.400 The following information relates to operation in the current year. The raw materials perchased include both direct and indirect matonals. Asume that all transactions were on account Purchase of Raw Materials 51516,000.00 % Direct and 30% tadirect) Raw material roquisitioned for the use in production Direct : S1070,000. Indirect : $230,000 Labour.com Dinoet : $33.5 per he. Indirect : 518 per te Salay for office employees Deprecation on Factory Building Depreciation on Corporate Building S180,000 Utility cost $100,000 (66% relates to factory and the test relates to corporate) Page 1 of 4 $15.000 Factory Machinery Maintenance Cost Advertising Expense Real $200,000 creates to factory and the rest relates to corporate ) Additional Information The direct labours worked a total (9.300 hown. The indirect labours worked for a total of 11.300 hours Manufacturing overhead was applied to production. The company received lower than expected onders during the year for which the machines ran for a total of 70.000 bow . During the year, a total of 46.000 units of batteries were manufactured and transferred to finished foods, out of which 41.000 were sold to customers at the cling price of 570 per battery Required: Use the information given above to write the appropriate journal entries for Blocing Company 20 mark) 1. Calculate whether the manufacturing overhead was over applied or under applied. Write the appropriate journal entry to record the overrunder applications marks)
