Chapter 1: Tyler Company had the following information available for the year 2020. Beg RM 1/1/20 $ 7,000 Raw materials purchased $ 60,000 End RM 12/31/20 $15,000 Direct labor $ 60,000 Beg WIP 1/1/20 $30,000 MOH applied $ 90,000 End WIP 12/31/20 $72,000 Sales Revenue for 2020 $250,000 Beg FG 1/1/20 $10,000 End FG 12/31/20 $49,500 1) Based on the information presented above, calculate the following: a. Direct Materials Used, b. Cost of Goods Manufactured C. Cost of Goods Sold 2) What is the amount of gross profit the company earned during 2020? Chapter 2: Reagan Manufacturing is working on two job orders. The job cost sheets show the following: Direct Materials Direct Labor Job 101 $6,500 Job 102 $8,500 $2,100 $6,200 At the beginning of the year the company had estimated total overhead cost to be $572,000 and expected their direct labor cost to be $440,000. The company uses a traditional costing system and applies overhead costs to jobs based on a percentage of direct labor cost. 1) What is Reagan's predetermined overhead application rate based on a percentage of direct labor cost? 2) How much overhead should be applied to each job using the predetermined overhead rate? Job 101: Job 102: 3) Prepare the journal entry to record the cost of Direct Materials put into production for Job 101. Account Name Debit Credit 4) Prepare the journal entry to apply the Direct Labor cost from the factory labor account for Job 101. Account Name Debit Credit 5) Prepare the journal entry to apply or assign manufacturing overhead cost to Job 101, based on your answer from #2 (overhead applied based on the predetermined overhead rate). Account Name Debit Credit 6) What is the total cost of Job 101? 7) If Job 101 was completed and subsequently sold on account for $14,000, record the journal entry to record the completion of Job 101 and the sale of Job 101. Account Names Debit Credit 8) At the end of the year, Reagan Manufacturing needs to analyze their overhead costs and determine whether or not the overhead applied to jobs during the year was accurate based on actual overhead costs incurred. a. If the company incurred $584,300 in actual overhead costs and applied $585,600 to jobs during the year, was the overhead over- or under-applied for the year, and if so, by how much? b. What is the entry to correct the over- or under-application of the overhead? Account Name Debit Credit Chapter 4: Given the following information, answer the questions below to determine the amount of overhead to assign to each product line using Traditional Costing and Activity-Based Costing. Activity Cost Pools Overhead per Cost Pool Overhead Activity Cost Driver Total Expected Use of ABC OH Rate Cost Drivers Purchasing $ 320,000 Design & Customization $ 258,000 Machining TOTAL Overhead $ 422,000 $1,000,000 Purchase Orders Design Hours Machine Hours 400 Design Hours 20,000 Machine Hours 1,000 PO's ? ? ? Activity Cost Pools Purchasing Design & Customization Machining Actual Use of Cost Drivers - Standard 650 Purchase Orders O Design Hours 18,000 Machine Hours Actual Use of Cost Drivers - Custom 390 Purchase Orders 405 Design Hours 2,400 Machine Hours 1) What is the amount of overhead that would be applied or assigned to each product line assuming the company uses a traditional based costing system where overhead is allocated based on machine hours? 2) What is the amount of overhead that would be applied or assigned to each product line under activity-based costing, assuming the actual use of cost drivers per product? 4 3) Based on your answer in 2), if actual overhead incurred during the year was $1,025,400, was overhead under- or overapplied and by what amount? What is the journal entry to correct the under- or overapplication