Alle unsep 23 at 11:59pm Use the following information to answer the questions assigned: Beginning inventories were: Raw materials.... ....$45,000 ...20,000 Work in progress.... Finished Goods 32,000 For the current year the company's predetermined overhead rate was based on a formula that estimated $640,000 of total manufacturing over head for an estimated activity level of 40,000 direct labor hours. The company applies overhead cost to jobs on the basis of direct labor hours. Question 1 should read "What is the company's predetermined overhead rate for the current year?" Required: Answer questions 1. see above) 2.4,5,7,8, 9, 10, 12 through 15. delete backspace enter ......... $35,000 The company applies overhead cost to jobs on the basis of direct labor-hours. For the current vear, the company's predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year: Raw materials were purchased on account, $510,000. b. Raw materials used in production, $480,000. All of of the raw materials were used as direct materials. c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor. $150,000; selling and administrative salaries, $240.000 d. Incurred various selling and administrative expenses (e.s., advertising, sales travel costs, and finished goods warehousing). $367,000. e incurred various manufacturing overhead costs (e.g., depreciation, insurance, and utilities), $500,000 f. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year. e Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed dur- ing the year. h. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1.690,000 to manufacture according to their job cost sheets. Required: 1. What is the journal entry to record raw materials used in production? 2. What is the ending balance in Raw Materials? 3. What is the journal entry to record the labor costs incurred during the year? 4. What is the total amount of manufacturing overhead applied to production during the year? Chapter 3 5. What is the total manufacturing cost added to Work in Process during the year? 6. What is the journal entry to record the transfer of completed jobs that is referred to in item g above? 7. What is the ending balance in Work in Process? 8. What is the total amount of actual manufacturing overhead cost incurred during the year? 9. Is manufacturing overhead underapplied or overapplied for the year? By how much! 10. What is the cost of goods available for sale during the year? II. What is the journal entry to record the cost of goods sold referred to in item h above? 12. What is the ending balance in Finished Goods? 13. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? 14. What is the gross margin for the year? 15. What is the net operating income for the year? onnect EXERCISE 3-1 Prepare Journal Entries LO3-1 Larned Corporation recorded the following transactions for the just completed month. a. $80,000 in raw materials were purchased on account. b. 571.000 in raw materials were used in production of this amount. $62.000 was for direct materials and the remainder was for indirect materials. Total labor wages of $112.000 were paid in cash. Of this amount. S101.000 was for direct labor and the remainder was for indirect labor. d. Depreciation of $175,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. EXERCISE 3-2 Prepare T-Accounts LO3-2, LO3-4 Lurvin Enterprises recorded the following transactions for the just completed month The company had no beginning inventories. a. $94.000 in raw materials were purchased for cash. b. $89,000 in raw materials were used in production. Of this amount. $78.000 was for direct materials and the remainder was for indirect materials, Total labor wages of $132.000 were incurred and paid. Of this amou r