For 2018, Gary Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information: Estimated manufacturing overhead $350,000 and Estimated Machine-hours 70,000 hours and estimated labor hours 20,000 hours. Company uses 500 machine hour in Job 120 and 700 machine hour in Job 130. The applied manufacturing overhead for Job 130 is:

a. $2,500.

b. $7,500.

c. $3,500.

d. $10,500.

Overapplied manufacturing overhead exists when overhead assigned to work in process is?

a. less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

b. more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

c. more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.

d. less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.

-0 During 2018 Jana Company started a construction job with a contract price of $2,000,000. The job was completed in 2020. The Following information is available 2019 2018 2017 Costs incurred to date $500,000 $1,100,000 $1,600,000 Estimated costs to complete $1,00,000 $600,000 Billings to date 300,000 900,000 1,600,000 Collections to date 270,000 810,000 1,425,000 Instructions -a) Compute the amount of gross profit to be recognized each year assuming the cost recovery method is used) b) Prepare all necessary journal entries for 2019) Compare the realized gross profit for each period between percentage of completion method and cost recovery method) -0 During 2018 Jana Company started a construction job with a contract price of $2,000,000. The job was completed in 2020. The Following information is available 2019 2018 2017 Costs incurred to date $500,000 $1,100,000 $1,600,000 Estimated costs to complete $1,00,000 $600,000 Billings to date 300,000 900,000 1,600,000 Collections to date 270,000 810,000 1,425,000 Instructions -a) Compute the amount of gross profit to be recognized each year assuming the cost recovery method is used) b) Prepare all necessary journal entries for 2019) Compare the realized gross profit for each period between percentage of completion method and cost recovery method)