Axolot Pte Ltd

Axolot Pte Lid makes customized machineries and uses a normal job-order costing system. Partial Information from Axolot's balance sheet as of Apr 30, 202X is shown below: Materials Inventory (X - $3,000; Y - $2,000; Indirect materials - $5,000) $10,000 Work in Process Inventory - Job 411 6,000 Finished Goods Inventory - Job 410 10,000 Transactions in the month of May are listed below: a) Purchased direct and indirect materials. Material X $3,000 Material Y 3,000 Indirect Materials 2,000 Total $8,000 b] Issued direct and indirect materials. Job 411 Job 412 Total Material X $2,000 $1,000 $3,000 Material Y 1,000 2,000 3,000 Subtotal $3,000 $3,000 $6,000 Indirect Materials 2,000 Total $8,000c) Labour costs incurred. Job 411 $12,000 Job 412 8,000 Indirect Labour 5,000 Total $25,000 d) Factory utilities, factory depreciation and factory insurance incurred. Utilities $ 800 Depreciation 15,000 Insurance 2,400 Total $18,200 e) Factory overhead costs were applied to jobs at the predetermined rate of $15 per machine hour. Job 411 incurred 1,200 machine-hours and Job412 used 800 machine-hours. f) At the end of May 202x, Job 411 was completed and Job 412 was still in process. g) Job 410 and Job 411 were shipped to customers in May 202x. Both jobs are marked up with 20% profit based on manufacturing cost. Axolot closed any over or under-applied overhead to the Cost of Goods Sold account at the end of every month. Required: (I) Prepare journal entries to record the transactions for the events from (a] to (g). [ill Compute the ending balance of the ending work in process inventory account as at May 31. [Ill) Compute the difference between actual overhead incurred and applied overhead. Indicate if this amount is over or under-applied. (iv) Post the necessary journal entry to close the overhead variance amount