B G H M N O 3 1 Job Order Costing 2 Using Excel to calculate a predetermined overhead allocation rate, journalize and post manufacturing journal entries, and adjust for overallocated or une Cedar River Trikes manufactures three-wheeled bikes for adults. The company allocates manufacturing overhead based on machine hours. Cedar River expects to incur $250,000 of manufacturing overhead costs, and to use 10,000 machine hours during 2018. Cedar River reported 4 the following inventory balances at May 31, 2018: Raw Materials inventory $25,000 Work-in-Process Inventory $18,000 Finished Goods Inventory $43,000 8 During June, 2018, Cedar River actually used 1.100 machine hours. 5 6 7 9 H K M Requirement1 Compute the predetermined overhead allocation rate for fiscal year 2018. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Predetermined overhead allocation rate Total estimated overhead costs/Total estimated machine hours 5 7 3 9 Total estimated overhead costs 10 Total estimated machine hours Predetermined overhead allocation rate 11 12 13 14 15 Requirement 2 Journalize the transactions in the general journal. The account titles are available when you click the down arrow. Use the increase Indent button on the Home tab to indent items. (Scroll down to view hints.) (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Account/Explanation Debit Credit Date (a) Purchased materials on account, $140,000 5 7 8 9 10 11 12 13 (b) Used direct materials, $110,000 14 (c) 15 16 Manufacturing wages incurred totaled $80,000; 94% was direct labor and 6% was indirect labor. 17 18 19 (d) 20 21 Used indirect materials, $5,500 (e) Incurred other manufacturing overhead on account, $22,000 (f) Allocated manufacturing overhead for June 2018. Machine hours: 1,100 during June..OH Rate: $25/hour. 1 (g) $220,000 of trikes were completed during June. 2 3 4 5 6 7 8 9 10 1 (h) Sold $450,000 of trikes on account. Sold $450,000 of trikes on account. The cost of the trikes sold was $245,000 42 43 14 Requirement 3 Post the transactions. The balances in the T-accounts are automatically updated. Enter the beginning balances for the inventories. Assume the rest of the accounts have beginning balances of zero (do not enter zero as the beginning balances). (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values. Accounts Receivable Accounts Payable Sales Revenue 0 0 5 5 7 8 9 10 11 12 bal. 13 Raw Materials Inventory Wages Payable Manufacturing Overhead 14 0 15 16 Work-in-Process Inventory 17 bal. 0 18 19 20 Cost of Goods Sold A B G E F G 7 8 0 9 10 0 11 Raw Materials Inventory Wages Payable Manufacturing Overhead 12 bal. 13 14 0 15 16 Work-in-Process Inventory 17 bal. 0 18 19 20 Cost of Goods Sold 0 21 22 Finished Goods Inventory 23 24 bal. 25 0 26 27 28 29 G H Requirement Adjust the manufacturing overhead account a. Prepare the journal entry. b. Post the journal entry to the ENTERANSWERS tab. (Always use cell references and formulas where appropriate to receive full credit. if you copy/paste from the instructions tab you will be marked wrong, Enter all amounts as positive values. Do not use a minus signor parentheses for any values. . Date Account/Explanation Debit Credit 0 0 Adjusted manufacturing overhead. 1 2 3 Requirements 4 list the ending balances for flaw Materials Inventory. Work in Process Inventory, Finished Goods Inventory, and cost of Goods Sold. 15 Always use cell references and formulas where appropriate to receive full credit. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values.) 16 12 Account Ending balance E Raw Materials inventory 19 Work in Process Inventory 20 Finished Goods twentory Cost of Goods Sold
