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Dwitilas Inc makes custom robot for factories. Dwitilas Inc applies overhead at basis of direct labor cost. The company estimates annual overhead costs will be
Dwitilas Inc makes custom robot for factories. Dwitilas Inc applies overhead at basis of direct labor cost. The company estimates annual overhead costs will be $8,500,000 and annual direct labor cost will be $9,500,000. During February, Dwitilas works on two jobs: F13 and W02. Below are data concerning these jobs. Manufacturing Costs incurred (1) Dwitilas purchases 13,500 gear at $50 per unit and 8000 circuits at $65 per unit for a total cost of $1,195,000 purchased on account on February 1 (2) Dwitilas incurs $850,000 factory labor costs relates to wages payable $800,000 and $50,000 relates to employer payroll taxes (3) Dwitilas incurs manufacturing overhead exclusive of indirect material and indirect labor (Accounts Payable, Accumulated Depreciation, and Prepaid Insurance) $600,000 Assignment of Costs (4) Direct Materials: Job F13 $597,500, Job W02 $478,000 Indirect Materials: $59,750 (5) Direct Labor: Job F13 $450,000, Job WO2 $370,000 Indirect Labor: $30,000 (6) Manufacturing Overhead (7-9) Dwitilas completed Job F13 and sold in on account for $2,300,000. Job Wo2 was partially completed. a. Compute the predetermined overhead b. Journalize February transactions in sequence followed above! C. Job F13 quantity is 1000 units. Fill in a Job Cost Sheet for Job F13! d. What was the amount of under-or overapplied manufacturing overhead
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