Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $2,448,000 of factory overhead costs and use 68,000 machine hours. Erkens Company recorded the following events during the month of April: a. Purchased 198,000 pounds of materials on account; the cost was $5.90 per pound. b. Issued 129,000 pounds of materials to production, of which 19,500 pounds were used as indirect materials. c. Incurred direct labor costs of $285,000 and $49,000 of indirect labor costs. d. Recorded depreciation on equipment for the month, $77,500. e. Recorded expired insurance costs for the manufacturing property, $4,400. f. Paid $9,400 cash for utilities and other miscellaneous items for the manufacturing plant. g. Completed Job H11 costing $8,400 and Job G28 costing $81,500 during the month and transferred them to the Finished goods inventory account. h. Shipped Job G28 to the customer during the month. The job was invoiced at 40% above cost. 1. Used 9,500 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. Journal entry worksheet < 2 5 6 7 8 9 10 > Issued 129,000 pounds of materials to production, of which 19,500 pounds were used as indirect materials. Note: Enter debits before credits. Transaction General Journal Debit Credit Work-in-process inventory Factory overhead Materials inventory Record entry Clear entry View general Journal < Req 1 Req 3A > t View transaction list Journal entry worksheet < nces 2 4 5 6 7 8 9 10 > Incurred direct labor costs of $285,000 and $49,000 of indirect labor costs. Note: Enter debits before credits. Transaction c. General Journal Debit Credit Clear entry Record entry View transaction list Journal entry worksheet 2 4 5 6 7 8 9 10 Recorded depreciation on equipment for the month, $77,500. Note: Enter debits before credits. Transaction d. Record entry E General Journal Debit Credit Clear entry View general journal ok int View transaction list Journal entry worksheet < 1 rences 5 6 7 8 9 10 Recorded insurance costs for the manufacturing property, $4,400. Note: Enter debits before credits. Transaction General Journal Debit Credit Recountry Clear entry Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event entry required" in the first account field.) View transaction list Journal entry worksheet > 3 5 7 8 9 10 Paid $9,400 cash for utilities and other miscellaneous items for the manufacturing plant. Note: Enter debits before credits. Transaction f. General Journal Debit Credit Record entry Clear entry View general Journal Journal entry worksheet < 2 3 5 6 8 9 10 Completed Job H11 costing $8,400 and Job G28 costing $81,500 during the month and transferred them to the Finished goods inventory account. Note: Enter debits before credits. Transaction 9 General Journal Debit Credit Record entry Clear entry Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, sel- entry required" in the first account field.) ok View transaction list nt rences Journal entry worksheet > 5 6 7 8 9 10 > Record the cost of the Job G28 which was shippped to the customer during the month. Note: Enter debits before credits. Transaction h-1. General Journal Debit Credit Record entry Clear entry View general Journal View transaction list Journal entry worksheet < nces 2 5 6 7 8 10 > Record the invoice issued for Job G28. The sale was made at 40% above cost. Note: Enter debits before credits. Transaction h-2. General Journal Debit Credit Record entry Clear entry inces View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Used 9,500 machine-hours during April.. Note: Enter debits before credits. Transaction 110 6 General Journal Debit Credit Record entry Clear entry > View general journal Erkens Company recorded the following events during the month of April: a. Purchased 198,000 pounds of materials on account; the cost was $5.90 per pound. b. Issued 129,000 pounds of materials to production, of which 19,500 pounds were used as indirect materials. c. Incurred direct labor costs of $285,000 and $49,000 of indirect labor costs. d. Recorded depreciation on equipment for the month, $77,500. e. Recorded expired insurance costs for the manufacturing property, $4,400. f. Paid $9,400 cash for utilities and other miscellaneous items for the manufacturing plant. g. Completed Job H11 costing $8,400 and Job G28 costing $81,500 during the month and transferred them to the Fini. inventory account. h. Shipped Job G28 to the customer during the month. The job was invoiced at 40% above cost. i. Used 9,500 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Compute the amount of overapplied or underapplied overhead. overhead Req 1 Req 2 Req 3A Req 3B Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. (If no entry is r transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 Record the entry to close the overhead account. Note: Enter debits before credits. Transaction 1 General Journal Record entry Clear entry + Debit Credit View general Journal