Boeing Company manufactures batteries and uses job-order conting system. For the comment year, the manager of the company estimated that the company would need 8000 machine hors and incur a tixed manufacturing overhead cost $325,000 and a variabile manufacturing overhead cost of $7.5 per machine hour. Boeing Company had beginning inventory as follows: Raw Material WIP Finished Goods $14.000 $12.400 $20,000 The following information relates to operation in the current year. The taw materials purchased include both direct and indirect materials. Assume that all transactions were on account Purchase of Raw Materials $1516,000 70% Direct and 30% Indineer) Raw material requisitioned for the use in production Direct : $1070.000. Indirect : 5230,000 Labour cost Direct : $33.5 per hr. Indirect : Six per hr Salary for office employees $40,000 Deprecation on Factory Building $320,000 Depreciation on Corporate Building S180,000 Utility cout $100,000 (65% relates to factory and the best selates to corporate) Page 1 of 4 SI5.000 Fasty Machinery Maintenance Coast Advertising Expense Real $20,000 S200,000 (70) relates to factory and the rest selites to corporate) Additional Information: - The direct labours worked a total of 9.300 hours. The indirect labouts worked for a total of 11.300 hours - Manufacturing overhead was applied to production. The company received lesser than expected orders during the year for which the machines ran for a total of 70,000 hours . During the year, a total of 46.00 units of batteries were manufactured and transferred to finished goods, cut of which 43,000 were sold to customers at the selling price of 570 per battery Required: 4. Use the information given above to write the appropriate journal entries for Boeing Company (20 marks) b. Calculate whether the manufacturing overhead was over applied or under applied in the appropriate journal entry to record the over/under application. (5 marks) 1. Boeing Company manufactures batteries and uses job-ondet costing system. For the current year, the manager of the company estimated that the company would need so machine hou and in a fixed manufacturing overhead cost $325.000 and a variable manufacturing overheat cost of 75 per machine how Bacing Company had beginning inventory follows: Raw Material WIP Finished Goods $14.000 512,400 The following information relates to operation in the current year. The raw materials purchased include both direct and indirect manals. Assume that all transactions were on account Purchase of Raw Materials 51516,000.00 Direct and 30 tadirect) Rew material requisitioned for the wie in production Direct : S1070,000. Indirect : $230,000 Labour.com Dincet : $33.5 per be. Indirect : 518 per le Salary for office employees Deprecation on Factory Building Depreciation on Corporate Building SI50.000 Utility cost $100,000 (68% relates to factory and the rest relates to corporate) Page 1 of 4 $15.000 Factory Machinery Maintenance Com Advertising Expense Real $200.000 can relates to factory and the rest relates to Additional information The direct labours worked a total 19.300 hown. The indirect labours worked for a total of 11.300 hours Manufacturing overhead was applied to production. The company received Roser than expected onders during the year for which the machines ran for a total of 70.000 bow . During the year, a total of 46.000 units of batteries were manufactured and transferred to finished foods, et of which 43.000 were sold to customers at the cling price of 570 per battery Required Use the information given above to write the appropriate journal entries for Boeing Company (20 mark) 1. Calculate whether the manufacturing overhead was over applied or under applied. Write the appropriate journal entry to record the ever under application marks) Boeing Company manufactures batteries and uses job-order conting system. For the comment year, the manager of the company estimated that the company would need 8000 machine hors and incur a tixed manufacturing overhead cost $325,000 and a variabile manufacturing overhead cost of $7.5 per machine hour. Boeing Company had beginning inventory as follows: Raw Material WIP Finished Goods $14.000 $12.400 $20,000 The following information relates to operation in the current year. The taw materials purchased include both direct and indirect materials. Assume that all transactions were on account Purchase of Raw Materials $1516,000 70% Direct and 30% Indineer) Raw material requisitioned for the use in production Direct : $1070.000. Indirect : 5230,000 Labour cost Direct : $33.5 per hr. Indirect : Six per hr Salary for office employees $40,000 Deprecation on Factory Building $320,000 Depreciation on Corporate Building S180,000 Utility cout $100,000 (65% relates to factory and the best selates to corporate) Page 1 of 4 SI5.000 Fasty Machinery Maintenance Coast Advertising Expense Real $20,000 S200,000 (70) relates to factory and the rest selites to corporate) Additional Information: - The direct labours worked a total of 9.300 hours. The indirect labouts worked for a total of 11.300 hours - Manufacturing overhead was applied to production. The company received lesser than expected orders during the year for which the machines ran for a total of 70,000 hours . During the year, a total of 46.00 units of batteries were manufactured and transferred to finished goods, cut of which 43,000 were sold to customers at the selling price of 570 per battery Required: 4. Use the information given above to write the appropriate journal entries for Boeing Company (20 marks) b. Calculate whether the manufacturing overhead was over applied or under applied in the appropriate journal entry to record the over/under application. (5 marks) 1. Boeing Company manufactures batteries and uses job-ondet costing system. For the current year, the manager of the company estimated that the company would need so machine hou and in a fixed manufacturing overhead cost $325.000 and a variable manufacturing overheat cost of 75 per machine how Bacing Company had beginning inventory follows: Raw Material WIP Finished Goods $14.000 512,400 The following information relates to operation in the current year. The raw materials purchased include both direct and indirect manals. Assume that all transactions were on account Purchase of Raw Materials 51516,000.00 Direct and 30 tadirect) Rew material requisitioned for the wie in production Direct : S1070,000. Indirect : $230,000 Labour.com Dincet : $33.5 per be. Indirect : 518 per le Salary for office employees Deprecation on Factory Building Depreciation on Corporate Building SI50.000 Utility cost $100,000 (68% relates to factory and the rest relates to corporate) Page 1 of 4 $15.000 Factory Machinery Maintenance Com Advertising Expense Real $200.000 can relates to factory and the rest relates to Additional information The direct labours worked a total 19.300 hown. The indirect labours worked for a total of 11.300 hours Manufacturing overhead was applied to production. The company received Roser than expected onders during the year for which the machines ran for a total of 70.000 bow . During the year, a total of 46.000 units of batteries were manufactured and transferred to finished foods, et of which 43.000 were sold to customers at the cling price of 570 per battery Required Use the information given above to write the appropriate journal entries for Boeing Company (20 mark) 1. Calculate whether the manufacturing overhead was over applied or under applied. Write the appropriate journal entry to record the ever under application marks)