E17-20 Allocating and adjusting manufacturing overhead Young Foundry uses a predetermined owerhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. At the beginning of 2018, the company expected to incur the following Learning Objectives 3,5 1. $12 per MH Manufacturing overhead costs Direct labor costs Machine hours $ 840,000 1,480,000 70,000 hours At the end of 2018, the company had actually incurred: Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours $ 1,230,000 620,000 35,500 26,000 22,500 17.000 60,000 hours Requirements 1. Compute Young's predetermined overhead allocation rate. 2. Prepare the journal entry to allocate manufacturing overhead. 3. Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. Is manufacturing overhead underallocated or overallocated? By how much? 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease Cost of Goods Sold? Learning Objective 3 E16-20 Preparing a schedule of cost of goods manufactured Wilson Corp., a lamp manufacturer, provided the following information for the year ended December 31, 2018: 1. COGM: $444,000 Balances: Ending Beginning $ 59,000 109,000 41,000 $ 23,000 62,000 44,000 Direct Materials Work-in-Process Inventory Finished Goods Inventory Other information: Depreciation, plant building and equipment Direct materials purchases Insurance on plant Sales salaries Repairs and maintenance-plant Indirect labor Direct labor Administrative expenses $ 16,000 151,000 24,000 47,000 10,000 39,000 121,000 60,000 Requirements 1. Use the information to prepare a schedule of cost of goods manufactured 2. What is the unit product cost if Wilson manufactured 3.700 lamps for the yeart