Freezing Winter Products Ltd. (FWPL) operates a joborder cost system and allocates overhead costs to jobs on the basis of direct labour cost. The company estimated manufacturing overhead cost in the amount of $258,400 and direct manufacturing labour cost of $152,000 for the year. FWPL's inventory accounts at the beginning and end of year were as follows:

- Janauary 1 ( beginning of year ) December 31 (end of year)

Raw Materials 38,000 28,000

Work in process 84,000 76,000

Finished Goods 132,000 116,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct) ............. $254,000

Direct manufacturing labour cost ..................... 156,000

Manufacturing overhead costs:

Insurance ........................................................... 22,000

Amortization of equipment ................................ 28,000

Indirect labour .................................................... 92,000

Property taxes .................................................... 12,000

Maintenance ....................................................... 27,000

Rent, building .................................................... 84,000

1.a. Compute the predetermined overhead rate for the year. (2 mark)

b. Compute the amount of under-or over allocated overhead for the year and prepare the journal entry to write it off to cost of goods sold. (4 marks)

2.Prepare journal entries for transactions affecting the Work in Process account for the year.(4 marks)

3.Compute the cost of goods sold for the year. (Do not include any under or over allocated overhead in your cost of goods sold figure.)(2 marks)

4.Job 222 was started and completed during the year. What price would have been charged to the customer if the job required $4,500 in direct materials and $5,800 in direct manufacturing labour cost, and the company priced its job at 30% above cost to manufacture? (4 marks)

5.Direct labour made up $16,800 of the $76,000 ending Work in Process inventory

balance. Of the remaining balance of $59,200, how much was direct materials and how much was manufacturing overhead?