1 -- Horton Foods bakes and sells 2,000 dozen bagels each week to food service operations. Among the costs are bakers' salaries, $34,000; production management salaries, $16,000; production equipment operating costs, $32,000; and flour and ingredients costs, $25,000. Using this information compute:

1. Prime cost
2. Conversion Cost

2 -- OK Company uses a job order cost system and allocates(applies) its overhead on the basis of direct labor cost. OK expects to incur $800,000 of overhead during the next period, and expects to use 100,000 labor hours at a cost of $10 per hour. What is OK company's Predetermined overhead rate (overhead application rate)?

3 -- Min Corporation uses a job order cost accounting system. Five jobs were worked on during the current year. The predetermined overhead rate is 20% of direct labor cost. The following information is available: (all material and time ticket information applies to direct cost)

Job	Material Requisitions	Time Tickets	Status
101	$66,000	$32,000	In Process
102	$63,000	$74,000	Sold
103	$39,000	$50,000	Finished
104	$32,000	$36,000	Sold
105	$53,000	$68,000	Finished

Use the following template to answer the Total Cost information for each job. Should have 5 job cost sheets

Job No	101
Materials	$XXX
Labor	XXX
Overhead	XXX
Total Cost	XXX

Use the Job cost information for Min Corporation found in the problem above to answer the following questions (Look at the status -- to see where it goes)

Total in Work in Process $___________________

Total Finished Good $______________________

Total Cost of Goods Sold $__________________

4 -- Prepare the journal entries for the following situations

1. Purchased material on account for $140,000
2. Issued raw material to production $130,000 (80% direct; 20% indirect)
3. Incurred and paid factory labor cost of $250,000
4. Allocated the factory labor cost above (70% direct; 30% indirect)
5. Incurred factory overhead -- utilities, $20,000; depreciation, $22,000
6. Applied overhead at 80% of direct labor costs.