1)At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,750; direct labor cost, $5,355. The average wage for Smith Company employees is $17 per hour.

By the end of the year, 18,100 direct labor hours had actually been worked, and Smith incurred the following actual overhead costs for the year:

Equipment lease . $ 6,800

Depreciation on building . 19,340

Indirect labor . 90,400

Utilities . 14,560

Other overhead 41,400

Required:

1.Calculate the overhead rate for the year.

2Calculate the total cost of Job K456.

3. the Dec. 31 journal entries to record actual overhead and to apply overhead to production for the year.

Is overhead overapplied or underapplied? By how much?

Assuming that the normal cost of goods sold for the year is $635,600, what is the adjusted cost of goods sold?

CHART OF ACCOUNTS

Smith Company

General Ledger

ASSETS

Cash

Accounts Receivable

Supplies

Prepaid Insurance

Raw Materials

Work in Process

Overhead Control

Finished Goods

Land

Building

Accumulated Depreciation

LIABILITIES

Accounts Payable

Wages Payable

Utilities Payable

Lease Payable

Other Payables

EQUITY

Common Stock

Retained Earnings

REVENUE

Sales

EXPENSES

Cost of Goods Sold

Insurance Expense

Wages Expense

Supplies Expense

Utilities Expense

Depreciation Expense

Schedule of Cost of Goods Manufactured Nelson Company Schedule of Cost of Goods Manufactured For the Month Ended April 30 1 Direct materials: 2 Beginning raw materials inventory $1,025.00 Purchases of raw materials 4,610.00 4 Total raw materials available $5,635.00 5 Ending raw materials 835.00 6 Raw materials used $4,800.00 7 Direct labor 2,170.00 8 Overhead applied $973.00 9 Add: Overapplied overhead 7,943.00 10 Add: Beginning work in process 11 12 13 14 153. Prepare the journal entries for December 31 to record actual overhead and to apply overhead to production for the year. Refer to the Chart of Accounts for the exact wording of account titles. PAGE 15 GENERAL JOURNAL ACCOUNT POST. REF. DEBIT CREDIT Overhead Control 172,500.00 19,340.00