Hamilton Company manufactures custom cabinets. It uses a job costing system with overhead allocated based on machine hours. Budgeted factory overhead for the year 2018 was $1,232,500, and management also budgeted 85,000 machine hours for the year. The companys tax rate is 21% (Round taxes to the nearest dollar). Below is Hamilton Companys trial balance at the beginning of October 2018.

Cash $25,600 Accounts Receivable.. 19,200 Finished Goods.. 42,300 Work in Process. 33,500 Materials 15,600 Prepaid factory Insurance..... 12,000 Machinery and Equipment 400,000 Accumulated Depreciation $180,000 Accounts Payable.. 18,900 Capital Stock. 250,000 Retained Earnings 99,300 Total $548,200 $548,200 The following transactions occurred during October: Oct 1. Borrowed from Statewide Bank on a 3-year note payable, $80,000. 2. Purchased materials on account for $42,000. 3. Issued materials to production totaling $45,000, 85 percent is direct materials and the remainder indirect materials. 5. Incurred research and development expense on account, $7,500. 10. Paid factory janitorial service, $7,900. 15. Declared a cash dividend of $2,500 17. Paid factory utility bill, $3,500. 19. Incurred restructuring costs on account, $5,000. 20. Paid other factory overhead costs, $4,000. 24. Paid administrative expenses, $9,800. 24. Payroll costs totaling $30,000 (but not yet paid) were incurred as follows: $17,300 for assembly line workers; $12,700 for factory supervision. 25. Prepaid factory insurance expired, $4,000. 26. Paid the cash dividend declared on Oct. 15, $2,500. 27. Paid selling expenses, $28,000. 27. Recorded depreciation: $9,000 for factory machines and equipment and $1,000 for office equipment. 28. Allocated manufacturing overhead to production. During October the company used 3,000 machine hours.

28. Paid payroll costs, $30,000. 29. Completed jobs costing $100,000 and transferred them to the storeroom. 30. Made sales on account, $160,000. The cost of goods sold was $96,000. 31. Collected from accounts receivable, $85,000. 31. Paid accounts payable, $65,000. 31. Accrue interest on loan, $800. 31. Calculate the overallocated or underallocated overhead and close this amount to the Cost of Goods Sold account.

Required 1. Compute the companys factory overhead allocation rate for the year. 2. Prepare journal entries to record Octobers transactions. Explanations are not required. If needed round numbers to the nearest dollar. Skip a line after each completed journal entry. 3. Post the journal entries to the appropriate general ledger accounts. 4. Prepare a trial balance for October 2018. 6.Prepare a multiple-step income statement and a classified balance sheet for October 2018. 7.Print and submit the general journal, general ledger, trial balance, income statement and balance sheet. Attach these documents to this project sheet with the team members names. 8. Also, email me your Excel income statement and balance sheet only, on or before the due date.

Note: 1. The general journal, general ledger, trial balance, multiple-step income statement and classified balance sheet must be completed in the templates located in the Project folder on Blackboard.

2. Grading of the project will be based on:

1. Accuracy of your journal, ledger, trial balance and financial statements

2. Neatness and formatting of your Excel income statement and balance sheet

3. Use of formulas in your Excel financial statements.

Do not use .00 after each number, or color your work. Also, do not use excessive $ signs on your financial statements.