Dear Experts,

Please teach me how to solve the following exercise.

Problem 17.3A Job Order Costing: A Comprehensive Problem

Georgia Woods,Inc., manufactures furniture to customers' specifications and uses job order costing. A predetermined overhead rateis usedin applying manufacturing overhead to individualjobs.In Department One, overhead is applied on the basis o machine-hours, and in Department Two, on the basis of directlabor hours. Atthe beginning ofthe current year, management made the following budget estimates to assistin determining the overhead application rate.

Department One Department Two

Directlabor cost $300,000 $225,000 Directlabor hours 20,000 15,000 Manufacturing overhead $420,000 $337,500 Machine-hours 12,000 7,500

Production of a batch of custom furniture ordered by City Furniture Gob no. 58) was started early in the year and completed three weeks later on January 29. The records forthis job show the following costinformation. Job order: City Furniture (job no. 58)

Department one Depertment two

Direct materials cost $10,100 $ 7,600 Directlabor cost $16,500 $11,100 Directlabor hours 1,100 740 Machine-hours 750 500

Selected additionalinformation for January is as follows

Department one Department two

Directlabor hours-month of January 1,600 1,200 Machine-hours-month of January 1,100 600 Manufacturina overhead incurred in January $39,010 $26,540

Required: a. Compute the predetermined overhead rate for each department. b Whatis the total cost ofthe furniture produced for City Furniture? c. Prepare the entries required to record the sale (on account) of the furniture to City Furniture. The sales price ofthe order was $147,000. Transaction 1 Record from to City Funiture. Transaction 2 Record the cost of goods sold (Job No.58) to City Funiture. d Determine the over- or underapplied overhead for each department atthe end of January