1.

Richardson & Sons purchased direct material worth $15 000 during the most recent period. At the end of the period the direct material account balance was $6000 larger than the beginning balance. Cost of goods sold was $150 000. Overhead is applied at 50 per cent of direct labour cost. Other account balances are:

What is the amount of prime cost added to production for the period?

$33 000 $29 000 $36 000 $9000

2.

Stingray Ltd manufactures outboard motors and an assortment of other marine equipment. The company uses a job costing system and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1 464 000, and management expect that 73 200 machine hours will be used.

The following events occurred in April:

(a)	The firm purchased marine propellers from Peninsula Marine Corporation for $7850 on credit.
(b)	A requisition was filed by the Gauge Department supervisor for 300 kilograms of clear plastic. The material was originally purchased for $0.60 per kilogram.
(c)	The Motor Testing Department supervisor requisitioned 300 metres of electrical wire, which is considered an indirect material. The wire was purchased for $0.10 per metre.
(d)	The months electricity bill of $800 was paid in cash.
(e)	Direct labour costs incurred in April were $150 000.
(f)	Aprils insurance cost was $1800 for insurance on the cars driven by sales personnel. The policy had been prepaid in March.
(g)	Metal tubing costing $6000 was purchased on credit.
(h)	A cash payment of $1700 was made on outstanding accounts payable.
(i)	Indirect labour costs of $21 000 were incurred during April.
(j)	Depreciation on equipment for April amounted to $14 000.
(k)	Job number G22, consisting of 50 tachometers, was finished during April. The total cost of the job was $1100.
(l)	During April, 7000 machine hours were used.
(m)	Sales on credit for April amounted to $350000. The cost of goods sold in April was $139000.

4. Required information

Required:
1.	Calculate the companys predetermined overhead rate for the year.(Omit the "$" sign in your response.)

Predetermined overhead rate

$

per machine hour

5. Required information

2.	Prepare journal entries to record the events listed above.(Omit the "$" sign in your response.)

General Journal	Debit	Credit
(a)	(Click to select)Raw-Material InventoryWork-in-Process InventoryAccounts PayableFinished-Goods InventoryCost of Goods SoldManufacturing OverheadCashManufacturing Supplies Inventory
	(Click to select)Raw-Material InventoryAccounts PayableWork-in-Process InventoryFinished-Goods InventoryCost of Goods SoldManufacturing OverheadCashManufacturing Supplies Inventory
(b)	(Click to select)Raw-Material InventoryWork-in-Process InventoryFinished-Goods InventorySelling and Administrative ExpenseManufacturing Supplies InventoryManufacturing OverheadWages PayableAccounts Payable
	(Click to select)Raw-Material InventoryWork-in-Process InventoryFinished-Goods InventorySelling and Administrative ExpenseManufacturing Supplies InventoryManufacturing OverheadWages PayableAccounts Payable
(c)	(Click to select)Accounts PayableManufacturing-Supplies InventoryManufacturing OverheadCost of Goods SoldWork-in-Process InventoryCashAccumulated Depreciation: EquipmentWages Payable
	(Click to select)Manufacturing-Supplies InventoryManufacturing OverheadAccounts PayableCost of Goods SoldWork-in-Process InventoryCashAccumulated Depreciation: EquipmentWages Payable
(d)	(Click to select)Selling and Administrative ExpenseManufacturing OverheadCashWages PayableFinished-Goods InventoryRaw-Material InventoryAccounts PayableCost of Goods Sold
	(Click to select)Selling and Administrative ExpenseManufacturing OverheadCashWages PayableFinished-Goods InventoryRaw-Material InventoryAccounts PayableCost of Goods Sold
(e)	(Click to select)Work-in-Process InventoryManufacturing OverheadWages PayableFinished-Goods InventorySelling and Administrative ExpensePrepaid InsuranceCashAccumulated Depreciation: Equipment
	(Click to select)Manufacturing OverheadWages PayableWork-in-Process InventoryFinished-Goods InventorySelling and Administrative ExpensePrepaid InsuranceCashAccumulated Depreciation: Equipment
(f)	(Click to select)Manufacturing OverheadPrepaid InsuranceSelling and Administrative ExpenseWork-in-Process InventoryFinished-Goods InventoryCost of Goods SoldAccounts PayableCash
	(Click to select)Prepaid InsuranceManufacturing OverheadSelling and Administrative ExpenseWork-in-Process Inventory: Tanning DepartmentFinished-Goods InventoryCost of Goods SoldAccounts PayableCash
(g)	(Click to select)Finished-Goods InventoryRaw-Material InventoryAccounts PayableSales RevenueAccounts ReceivableSelling and Administrative ExpenseAccumulated Depreciation: EquipmentManufacturing Overhead
	(Click to select)Finished-Goods InventoryAccounts PayableRaw-Material InventorySales RevenueAccounts ReceivableSelling and Administrative ExpenseAccumulated Depreciation: EquipmentManufacturing Overhead
(h)	(Click to select)Accounts PayableWork-in-Process InventoryCashFinished-Goods InventorySelling and Administrative ExpenseCost of Goods SoldSales RevenueWages Payable
	(Click to select)CashAccounts PayableWork-in-Process InventoryFinished-Goods InventorySelling and Administrative ExpenseCost of Goods SoldSales RevenueWages Payable
(i)	(Click to select)Work-in-Process InventoryWages PayableManufacturing OverheadRaw-Material InventoryAccounts ReceivableFinished-Goods InventoryCashSelling and Administrative Expense
	(Click to select)Manufacturing OverheadWages PayableWork-in-Process InventoryRaw-Material InventoryAccounts ReceivableFinished-Goods InventoryCashSelling and Administrative Expense
(j)	(Click to select)Raw-Material InventoryManufacturing OverheadAccumulated Depreciation: EquipmentFinished-Goods InventorySales RevenueAccounts ReceivableCost of Goods SoldCash
	(Click to select)Raw-Material InventoryManufacturing OverheadAccumulated Depreciation: EquipmentFinished-Goods InventorySales RevenueAccounts ReceivableCost of Goods SoldCash
(k)	(Click to select)Finished-Goods InventoryWork-in-Process InventoryRaw-Material InventorySelling and Administrative ExpenseSales RevenueCost of Goods SoldAccounts ReceivableWages PayableWages Payable
	(Click to select)Work-in-Process InventoryFinished-Goods InventoryRaw-Material InventorySelling and Administrative ExpenseSales RevenueCost of Goods SoldAccounts ReceivableWages Payable
(l)	(Click to select)Raw-Material InventoryWork-in-Process InventoryManufacturing OverheadSales RevenueSelling and Administrative ExpenseAccounts ReceivableCost of Goods SoldFinished-Goods Inventory
	(Click to select)Raw-Material InventoryWork-in-Process InventoryManufacturing OverheadSales RevenueSelling and Administrative ExpenseAccounts ReceivableCost of Goods SoldFinished-Goods Inventory
(m)	(Click to select)Accounts ReceivableSales RevenueSelling and Administrative ExpenseWages PayableRaw-Material InventoryCost of Goods SoldFinished-Goods InventoryCash
	(Click to select)Sales RevenueAccounts ReceivableSelling and Administrative ExpenseWages PayableRaw-Material InventoryCost of Goods SoldFinished-Goods InventoryCash
	(Click to select)Finished-Goods InventoryRaw-Material InventoryCost of Goods SoldSelling and Administrative ExpenseSales RevenueAccumulated Depreciation: EquipmentManufacturing OverheadAccounts Receivable
	(Click to select)Raw-Material InventoryCost of Goods SoldFinished-Goods InventorySelling and Administrative ExpenseSales RevenueAccumulated Depreciation: EquipmentManufacturing OverheadAccounts Receivable