74 Class Activity 4.35 75 76 Cost of goods manufactured; overapplied or underapplied overhead; journal entries 77 Sizzling Chef Lid, manufacturer of gourmet cooking utensils, uses job costing. Manufacturing overhead is 78 applied to production at a predetermined overhead rate of 150 per cent of direct labour cost. Any overapplied 79 or underapplied manufacturing overhead is closed to cost of goods sold at the end of each month 80 Additional information: 81 . Job SC55, consisting of ceramic spoon rests, was the only job in process on 31 January, with accumulated 82 costs as follows: 83 Direct material $8,000.00 84 Direct labour $4,000.00 85 Applied manufacturing overhead $6,000.00 86 Total $18,000.00 87 88 Jobs SB65, RT30 and TG118 were started during February. 89 . Direct materials requisitions during February totalled $28 000. 90 . Direct labour cost of $21 000 was incurred during February. 91 - Manufacturing overhead incurred in February was $33 000. 92 . The only job still in process on 28 February was job number TG118, with costs of $5 600 for direct material 3 and $3 800 for direct labour 34 5 Required: 6 1. Calculate the cost of goods manufactured for February. 7 2. Calculate the amount of overapplied or underapplied overhead to be closed to cost of goods sold on 28 Feb 8 3. Prepare journal entries to record the events described in requirements 1 and 2. 19