Hoshino Factory uses a job order costing system, and applies factory overhead (FOH) to work in process inventory using a budgeted overhead rate The factory applies FOH by multiplying the pre determined overhead rate by the actual driver units The activity base used by the factory is 'machine hours' The factory does not use Overhead Applied and Under(Over) applied Overhead account The applied overhead is credited to the Factory Overhead accounts before the actual overhead are incurred, and it is debited to Work in Process Inventory account Any difference in the balances in the Factory overhead account will be closed off to Cost of Sales account directly The factory incurred the following transactions during a period A Raw materials purchased on account $50,000 B Raw materials assigned to the job $70,000 Direct Materials cost were assigned to Work in Process inventory $55,000 Indirect Materials cost were assigned to Factory Overhead inventory $15,000 C Factory Labour costs incurred (General Labour costs are not included) $80,000 D Factory Labour costs assigned to the Job $80,000 Direct Labour costs were assigned to Work in Process $60,000 Indirect Labour costs were assigned to Factory Overhead $20,000 E Factory Overhead costs were applied to WIP using a budgeted factory overhead rate F Additional actual Factory overhead costs were billed $25,000 G Jobs completed and transferred to finished goods at cost $170,000 H Sales on account $220,000 Cost of sales from the job cost flows $130,000 I Under Over applied overheads were closed off to the Cost of Sales account Note The budgeted overhead rate is $25 per machine hour The factory used 2,000 machine hours during the period The inventory balances at the beginning of the period were $50,000 for raw materials , $90,000 for work in process and $85,000 for finished goods Assume the opening balances of other extracted T accounts were zero Required Ignore GST and Income Tax A)Journalise the above transactions (6 marks) B)Post general journal to General ledger accounts (make an adjustment if necessary) (3 marks) C)Identify the financial information from the ledger accounts (3 marks)

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Hoshino Factory uses a job-order costing system, and applies factory overhead (FOH) to work-in-process inventory using a budgeted overhead rate . The factory applies FOH

Hoshino Factory uses a job-order costing system, and applies factory overhead (FOH) to work-in-process inventory using a budgeted overhead rate. The factory applies FOH by multiplying the pre-determined overhead rate by the actual driver units. The activity base used by the factory is 'machine hours'. The factory does not use Overhead Applied and Under(Over) applied Overhead account. The applied overhead is credited to the Factory Overhead accounts before the actual overhead are incurred, and it is debited to Work in Process Inventory account. Any difference in the balances in the Factory overhead account will be closed off to Cost of Sales account directly.

The factory incurred the following transactions during a period:

Raw materials purchased on account

$50,000

Raw materials assigned to the job#

$70,000

Direct Materials cost were assigned to Work in Process inventory

$55,000

Indirect Materials cost were assigned to Factory Overhead inventory

$15,000

Factory Labour costs incurred (General Labour costs are not included)

$80,000

Factory Labour costs assigned to the Job #

$80,000

Direct Labour costs were assigned to Work in Process

$60,000

Indirect Labour costs were assigned to Factory Overhead

$20,000

Factory Overhead costs were applied to WIP using a budgeted factory overhead rate

Additional actual Factory overhead costs were billed.

$25,000

Jobs completed and transferred to finished goods at cost

$170,000

Sales on account

$220,000

Cost of sales from the job cost flows

$130,000

Under/Over-applied overheads were closed off to the Cost of Sales account

Note:

The budgeted overhead rate is $25 per machine hour. The factory used 2,000 machine hours during the period.

The inventory balances at the beginning of the period were $50,000 for raw materials, $90,000 for work in process and $85,000 for finished goods.

Assume the opening balances of other extracted T-accounts were zero.

Required; Ignore GST and Income Tax.

A)Journalise the above transactions (6 marks)

B)Post general journal to General ledger accounts (make an adjustment if necessary) (3 marks)

C)Identify the financial information from the ledger accounts (3 marks)