4 A B E F G H 1 K L 9 8 Company A had the following transactions in January. All went to one job. 10 1. Purchased Raw Materials on account for 46,300 11 2. 36,000 of Raw materials were issued from the stockroom to manufacturing. 12 of this total 8,800 was indirect material and 27,200 was direct material 13 3. Salaries paid to factory workers was 55,000. All was paid in cash, ignore 14 payroll taxes. 15 4. Labor was charged to Work in Process. 40,000 was direct and 16 15.000 indirect labor. 17 5. Factory rent of 30,000 and utility bills for 10,000 for the month were paid. 18 Both are manufacturing OH costs. 19 6. Manufacturing overhead is applied based on direct labor cost. The budget 20 estimated 500,000 in direct labor cost and 1,000,000 in overhead costs. 21 Calculate the predetermined OH rate. 22 7. Make the entry to apply overhead to Work in Process for this month. 23 8. Goods costing 65,000 were completed and transferred to finished goods 24 9. Finished goods which cost 72,000 to manufacture were sold for 120,000 25 10. What is the over or under applied overhead 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Answer the highlighted questions above Account Debit Credit 1 Raw material inventory 46,300 Account payable 46,300 2 Work in process inventory 27,200 Manufacturing overhead 8,800 Raw material inventory 36,000 3 Salaries and wages payable 55,000 Cash 55,000 4 Work in process inventory Manufacturing overhead Salaries and wages payable 40,000 15,000 55,000