Direct labor at the company is compensated at a rate of $21 per hour. A predetermined rate based on direct labor-hours is used to assign manufacturing overhead to jobs.

Year 1	Year 2
Direct labor-hours worked	144,000	118,000
Manufacturing overhead costs incurred:
Indirect labor	$4,580,000	$5,603,340
Employee benefits	2,204,000	3,134,000
Supplies	858,000	1,367,400
Power	620,000	987,420
Heat and light	244,000	210,870
Supervision	598,000	721,970
Depreciation	2,370,000	2,370,000
Property taxes and insurance	945,000	945,000
Total manufacturing overhead costs	$12,419,000	$15,340,000

At the start of Year 3, Crandall has two jobs not yet delivered to customers. Job AT-360 was completed on December 15, Year 2. Its scheduled to ship out on January 21, Year 3. Job AT-365 is still in progress. The predetermined rate in Year 2 was $155 per direct labor-hour. Data on direct material costs and direct labor-hours for these jobs in Year 2 was as follows:

	Job AT-360	Job AT-365
Direct Labor Cost	680,000	947,000
Direct Labor-hours	4,800 hours	6,200 hours

During Year 3, Crandall incurred direct material costs and direct labor-hours for all jobs worked in Year 3, including the completion of Job AT-365, as follows:

Direct material cost	$15,780,000
Direct labor hours	150,000
Actual manufacturing overhead	$18,609,400

To compute the predetermined overhead rate, Crandall uses the previous years actual over- head rate. At the end of Year 3, three jobs had not been shipped. Data on these jobs is as follows:

	AT-285	AT-288	AT-292
Direct Materials	$154,000	$224,500	$112,400
Direct Labor-Hours	2,600 hours	3,400 hours	7,500 hours
Job Status	Finished	Finished	In-Progress

A. What was the amount in the beginning Finished Goods and beginning Work-in- Process accounts for Year 3?

B. Crandall incurred direct materials costs of $210,000 and used an additional 800 hours in Year 3 to complete Job AT-365. What was the nal (total) cost charged to Job AT-365?

C. What was the overapplied or underapplied overhead for Year 3?

D. Crandall prorates any overapplied or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process Inventory. Prepare a | properly formatted journal entry to prorate the Overapplied or Underapplied Overhead calculated in requirement. As an allocation basis, use the direct labor hours in each account from Year 3.

E. A customer requested that Crandall bid on a job to be nished in Year 4. Crandall has estimated that the job will need approximately $156,000 in direct materials and 8,000 direct labor-hours. Due to the condition of the economy, Crandall believes demand for its services will be below average in Year 4, and the CEO therefore would like to bid aggressively, but doesnt want to lose money on the project. Crandall estimated essentially no sales or administrative costs connected with this job. What is the minimum amount the company can bid on the job and not incur a loss? (In order to perform an estimation of the variable portion of overhead, use the high-low method.)

I need to show the calculations

I have some answers and I want to know if my answes are ok. Could you please help me, with my HW.

Part 1: Job Costing

A.

Beginning Finished Goods Year 3	$152,4800
Beginning Work-in Process Year 3	$203,8200

Calculations

Job-AT360 Job-AT365

Direct material $680,000 $947,000

Direct labor-hours 4,800 6,200

Direct labor-rate 21 21

Overhead per labor hour 155 155

Job-AT360 Job-AT365

Direct labor-costs = $100,800 $130,200 (4,800 x 21)

Overhead = $744,000 $96,100 (4,800 x 155)

Total cost Year 2 = $1,524,800 $2,038,200 ($680,000+$100,800+$744,400)

B.

Total cost JobAT365 Year3 $ 330,800

Total cost Job-AT365 $2,369,000

Calculations

Beginning work-in process Job-AT365 = $2,038,200

Direct material in year 3 = $ 210,000

Direct labor hours incurred in year 3 = 800.00

Direct labor rate per hour = 21

Predetermined overhead rate year 3 = 130

Direct labor cost incurred year 3 = $16,800 ($800 x 21)

Overhead applied to Job-AT365 Year 3 = $104,000 (800 x 130)

Total cost charged to Job-AT365 year 3 = $330,800 ($210,000 + $16,800 + $104,000)

Total cost of Job AT-365 = $2,369,000 ($2,038,200 + $330,800)

Total actual overhead for year 2 = $15,340,000

Actual direct labor hours for year 2 = 118,000

Actual overhead rate per hour = 130 (15,340,000/118,000)

C.

Over-applied overhead year 3 = $890,600

Calculation

Direct labor hours worked in year 3 = 150,000

Predetermined overhead rate per hour = $130

Overhead applied for production year 3 = $19,500,000 (150,000 x $130)

Actual manufacturing overhead = $18,609,400

Over-applied overhead = $890,600 ($19,500,000 - $18,609,400)

D.

Over-applied overhead allocation

Costs of goods = $168,960

Finished = $457,621

In process = $264,012

Sold AT360 = 4,800 Finished AT365 = 7,000

Finished AT285 = 2,600 Finished AT288 = 3,400

Working-in process = 7500

Calculation

Direct labor hours = $25,300 (4,800+7,000+2,600+3,400+7,500)

Over-applied overhead = $890,600

Rate per direct labor hour = 35.20 ($890,600/$25,300)

Overhead allocated

a) Sold AT360 = 168,960 (35.20 x 4800)

b) Finished AT365 = 246,400(35.20 x 7000)

c) Finished AT285 = 91,520 (35.20 x 2,600)

d) Finished AT288 = 119,680 (35.20 x 3,400)

e) In progress AT292 = 264,000 (35.20 x 7500)