Chapter 3- Calculate the Predetermined overhead rate and apply to jobs & Cost flows 1. Job order costing- Application of MOH ABC Company manufactures custom-made wooden furniture. The company received an order from a customer to manufacture 100 units of executive desks this month. The following data have been incurred to complete this job: Wood $250,000 Wood cutting machine hours 500 hours Nails, Glue, and Stain $ 5,000 Depreciation on electronic saws $5,500 Factory Janitor wage $2,000 Factory Rent $4,000 Factory Utilities $3,000 Depreciation on delivery truck $5,000 Actual Direct labor wage rate for the job $15 per hour Actual direct labor hours used for the job 800 hours Budgeted Wood cutting machine hours for this year 5,000 hours Budgeted direct labor costs for this year $200,000 Budgeted Direct labor hours for this year 10,000 hours Budgeted MOH for this year $250,000 A) If the company applies MOH based on wood-cutting machine hours (MH's), what is the (1) total cost and (2) unit cost of this job? B) If the company applies MOH based on direct labor hours (DLH), what is the (1) total cost and (2) unit cost of this job? C) If the company applies MOH based on direct labor costs (DLC), what is the (1) total cost and (2) unit cost of this job?

2. Cost Flows and Journal entries Buckovitch Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $482,000 Raw materials (all direct) requisitioned for use in production $478,000 Direct labor cost $576,000 Manufacturing overhead: Indirect labor cost $136,000 Other manufacturing overhead costs incurred $414,000 Cost of goods manufactured $1,565,000 Cost of goods sold (unadjusted) $1,513,000 Required: a. What is the journal entry to record raw materials used in production? b. What is the journal entry to record the direct and indirect labor costs incurred during the year? c. What is the journal entry to record the transfer of completed goods from Work in Process to Finished Goods? d. What is the journal entry to record the cost of goods sold?