1.

Sweeties, Inc., manufactures a sugar product by a continuous process involving three production departmentsRefining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $388,000, $141,000, and $96,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,800, and work in process at the end of the period totaled $30,000.

Required:

A.

(1)	On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.*
(2)	On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.*
(3)	On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.*

B.

On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.*

*Refer to the Chart of Accounts for exact wording of account titles.

2.

The chief cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $140,000 and total direct labor costs would be $100,000. During May, the actual direct labor cost totaled $13,500 and factory overhead cost incurred totaled $19,200.

Required:

A.	What is the predetermined factory overhead rate based on direct labor cost?
B.	On May 31, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.
C.	What is the May 31 balance of the account Factory Overhead-Blending Department?
D.	Does the balance in part C represent over- or underapplied factory overhead?