Atr. Hassun is the owner of Mysterious Love Bakery that specializes in making various types of mooorating various effects and design into these cakes. On 1" January 2016, the bakery he company would work 15,000 machine hours and incur RM60,000 in annual cakes by estimated that and Job rth of July 2016, the company has started Job 78, a cake for the fireman department tins were recorde commemorate the KLIA tower anniversary. The following a special cake to s transactions were recorded for the month of July Phurchased 200 kilograms of flour at RM30 per kilogram and 100 kilograms of sugar at RM22 per kilogram on account 2 The payroll showed 420 ho 3. Requisitions filled by the raw materials storeroom . Incurred manufacturing overhead of depreciation on factory equipment as indirect labor and the remainder are classified as direct consisted of RM3,875 of direct totaled RM450, plant supervisor salary RM2,550, factory machine rental RM1,500 and other Manufacturing overhead was applied on the basis of 1.500 machine hours actually the 420 hours are classified labor are cls0hours of labor at RMS per hour. An analysis shows that 40 of materials and RM224 of indirect materials 5. worked during the month 6 Job 78 amounting to a total cost of RM2,050 was completed and transferred to the freezer 7 Job 78 was sold for RM3,540 and a cheque was received for the full payment. Instructions (a) Prepare journal entries to record transactions for item number 1 -7. (13 marks) (b) Determine whether manufacturing overhead is under-applied or over-applied by posting all the transactions into the manufacturing overhead T-account. Then close the balance of manufacturing overhead account. Show all your workings. (7 marks) Atr. Hassun is the owner of Mysterious Love Bakery that specializes in making various types of mooorating various effects and design into these cakes. On 1" January 2016, the bakery he company would work 15,000 machine hours and incur RM60,000 in annual cakes by estimated that and Job rth of July 2016, the company has started Job 78, a cake for the fireman department tins were recorde commemorate the KLIA tower anniversary. The following a special cake to s transactions were recorded for the month of July Phurchased 200 kilograms of flour at RM30 per kilogram and 100 kilograms of sugar at RM22 per kilogram on account 2 The payroll showed 420 ho 3. Requisitions filled by the raw materials storeroom . Incurred manufacturing overhead of depreciation on factory equipment as indirect labor and the remainder are classified as direct consisted of RM3,875 of direct totaled RM450, plant supervisor salary RM2,550, factory machine rental RM1,500 and other Manufacturing overhead was applied on the basis of 1.500 machine hours actually the 420 hours are classified labor are cls0hours of labor at RMS per hour. An analysis shows that 40 of materials and RM224 of indirect materials 5. worked during the month 6 Job 78 amounting to a total cost of RM2,050 was completed and transferred to the freezer 7 Job 78 was sold for RM3,540 and a cheque was received for the full payment. Instructions (a) Prepare journal entries to record transactions for item number 1 -7. (13 marks) (b) Determine whether manufacturing overhead is under-applied or over-applied by posting all the transactions into the manufacturing overhead T-account. Then close the balance of manufacturing overhead account. Show all your workings. (7 marks)
