Entry for Issuing Materials, and Recording Labor Costs and Overhead

A.Issuance of Materials

Materials issued for the current month are as follows:

Requisition

NumberMaterial Job No. Amount

201Aluminum500P 88,700

202Plastic50327,600

203Rubber5043,650

204GlueIndirect2,250

205Steel51038,750

Journalize the entry to record the issuance of materials.

B.Recording Labor Costs and Overhead

A summary of the daily time records for the current month are as follows:

Job No.Amount

500P 3,8750

5034,500

5045,600

Indirect12,500

(Factory supervision)

5107,860

Journalize the entry to record the factory labor costs and applied factory overhead.

C.Factory Overhead Rates, Entries, and Account Balance

Mego Company operates two factories.The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and an the basis of direct labor hours in Factory 2.Estimated factory overhead costs, direct labor hours, and machine hours are as follows:

Factory 1 Factory 2

Estimated factory overhead cost for 2021P 1,456,000 P 954,000

Estimated direct labor hours for the year 26,500 hours

Estimated machine hours for the year52,000 hours

Actual factory overhead costs for SeptemberP 117,600P 102,350

Actual direct labor hours for September 2,795 hours

Actual machine hours for September4,250 hours

a.Determine the factory overhead rate for Factory 1.

b. Determine the factory overhead rate for Factory 2.

c. Journalize the entries to apply factory overhead to productionin Factory 1 and Factory 2 for September.

d.Determine the balances of the factory overhead accounts for Factory 1 and Factory 2 as of September 30, and indicate whether the amounts represents overapplied or underapplied factory overhead.