Canib Tings & More does hand$-$orafted memorablla for the tourism industry, in which each batch of

liems is a job. The company has a highly machine intersive production process, so it allocates

manufacturing overhead based on machine hours. Carib Tings s More pre$-$determined overthead

application rate for $2024$ was computed from the following data:

Total estimated factory overheods $$2,400,000$

Total estimated machine hours $40,000$

At the end of May $2024,$ Carib Tings & More reported work in process inventory of $$176,000.$

During June $2024,$ Carlb Tings & More actually used $3,000$ machine hours and recorded the

following tranaactions.

Required:

$($a$)$ Compute Canib's predetermined manutacturing overhesd rate for $2024.$

$($b$)$ State the joumal entries necessary to record the above transactions in the general pournal. Assume

that Carib uses the perpetual inventory syatem.

$($c$)$ Post the manufacturing overheod tranaactions to the Manufacturing Overtead $T-$acoount and state

the balance on the acoount before performing end of period closing entries. Show the joumal

entries necessary to dispoes of the variance.

$($d$)$ What is the balance in the Cost of Goods Sold account atter the adjustment?

$($e$)$ Compute Carib's groas profi eamed on the jobs completed and sold, after adjusting for the

manulacturing overhead variance.

$($f$)$ Post the appropriate entries to Work in Process Inventary Control account $8$ determine the account

bolance on June $30,$ the end of the month.

$(9)$ Sate and explain three $(3)$ dillerences between a job costing system and a process cositing

system.