Budgeted total manufacturing overhead $466,400 Budgeted total direct labour hours 21,200

• During March, the firm began two production jobs: o Job U451, consisting of 80 units o Job D52, consisting of 120 units.

• The following events pertain to March:

o 1,000 square metres of raw material A were purchased on credit for $5,000. o 400 kilograms of raw material B were purchased on credit for $4,000. o The following requisitions were filed on 5 March:

• 240 square metres of raw material A @ $5.00 per square metre (Job U451)

• 950 kilograms of raw material B @ $10 per kilogram (Job D52)

• 10 litres of lubricant @ $10 per litre

• Raw materials A and B are treated as direct material, and the lubricant

  is an indirect material.

o Labour usage during the month:

direct labour, job U451, 750 hours @ $20 per hour direct labour, job D52, 920 hours @ $20 per hour indirect labour, general factory clean-up, $4,000 indirect labour, factory supervisory salaries, $9,000.

o Depreciation of the factory buildings and equipment recorded, $12,000 o Rent paid in cash for warehouse space used, $1,200 o Electricity cost incurred, $2,100. Invoices were received but not paid. o Council rates were paid in cash, $2,400. This relates to the factory buildings. o Insurance cost covering factory operations, $3,100. The insurance policy was

prepaid in February. o Cost of salaries and on-costs for sales and administrative personnel paid in cash, $8,000. o Depreciation on administrative office equipment recorded, $4,000. o Other selling and administrative expenses paid in cash, $1,000. o Job number U451 was completed in March. o Half of job U451 was sold on credit for $800 per unit. o The balances as per 1 March of selected accounts:

Cash 10,000 Accounts Receivables 21,000 Prepaid insurance 5,000 Raw material inventory 149,000 Indirect material inventory 500 Work in process inventory 91,00 Finished goods inventory 220,000 Accumulated Depreciation: buildings and equipment 102,000

Accounts Payable 13,000 Salaries Payable 8,000

1. Prepare journal entries to record the events of March.

2. Calculate the overapplied or underapplied overhead for March. Prepare a journal

   entry to close this balance to the cost of goods sold.

3. Prepare a schedule of cost of goods manufactured for March

4. Prepare a schedule of cost of goods sold for March.

IN SEPARATE STATEMENTS