A Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor cost to apply factory overhead to all jobs.

During the month of March, the company processed three jobs namely J21, J20 and J19:

J20 and J21 started in March while J19 was started in February.

		March 1	March 31
a.	Direct materials inventory	RM36,500	?
b.	Work in Process inventory	RM41,000	?
c.	Finished Goods inventory	0	0
d.	Cost of Goods Sold, March	$?
e.	Direct materials purchased in March	RM55,000
f.	Direct materials issued to production
	J19	RM16,380
	J20	RM24,220
	J21	RM14,000
g.	Factory labor-hours for direct and indirect labors (RM30/hour)
	J19	3,500
	J20	2,800
	J21	1,600
	Indirect Labor	6,900
h.	Other factory overhead costs incurred:
	Rent	RM131,500
	Utility	RM180,600
	Repairs and maintenance	RM188,500
	Depreciation	RM131,100
	Other	RM56,000

As of March 31, Job J19 was sold and Jobs J20 and J21 were still in processing. Total factory overhead budgeted in March was RM1,026,000 while the budgeted direct labor cost was RM270,000.

Required

1. Provide the journal entries for points e, f and g above. (3 marks)

2. Compute the predetermine factory overhead rate. (3 marks)

3. Compute the ending balance of the work in process inventory account for March.

(4 marks)

4. Prepare the statement of cost of goods manufactured for March. (4 marks)

5. Compute the amount of over or underapplied overhead. (4 marks)

6. What is the cost per unit of Job J19 if it has a total of 2000 units? (2 marks)