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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

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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 incut $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 cincurred 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 1. Paid $9.400 cash for utilities and other miscellaneous items for the manufacturing plant 9. 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 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 joutaatentry 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. 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. 3-5. 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. Reg 1 Reg 2 Req 3A Req 3B Compute Erkens Company's predetermined overhead rate for the year. Predetermined overhead rate per machine hour Req 2 > View transaction list Journal entry worksheet Record the cost of the Job G28 which was shippped to the customer during the month Note: Enter debits before credits General Journal Debit Credit Transaction h-1 Record entry Clear entry View general jou Journal entry worksheet Journal entry worksheet

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