1. Journalizing transactions; calculating overhead; adjusting manufacturing overhead

 

1. At the beginning of the period, Jan. 1, three jobs were in process:  Job 400 (DM= $2,500; DL = $3,500; MO = $2,275), and Job 401 (DM = $6,000; DL = $6,400; MO = $4,160), Job 402 (DM = 1,900; DL = 4,800; MO = $3,120)  Create job cost sheets for each job.
2. During the month Job 403 was started.  Create a job sheet for this job. **Just title the last job cost sheet – Job 403
3. Purchased raw material on account $125,000
4. Actual overhead costs included:
   1. Paid factory rent: $4000
   2. Utilities: $2800; 
   3. Insurance: $850
   4. Depreciation: $5,000
5. Estimated annual overhead costs: $276,250; Cost driver identified: Direct labor costs; estimated annual direct labor costs: $425,000; Calculate the pre-determined overhead rate.
6. Requisitioned $15,800 of material, of which $13,800 was direct material; $5,100 was for Job 400, $1,800 was for job 401, $3,600 was for Job 402, $3,300 was for Job 403 and the remainder was indirect material. Update the job cost sheets
7. Assigned $50,000 in labor costs, of which $40,500 was direct labor; $8,500 was for Job 400, $9,700 was for Job 401, $10,200 was for Job 402, $12,100 was for Job 403, and the remainder was indirect labor. Update the job cost sheets.
8. Calculate the amount of overhead to apply into process if actual direct labor costs totaled $40,500 (journalize the transaction); Calculate the amount of overhead to apply to jobs 400, 401, 402, and 403.  Update the job cost sheets.
9. Other manufacturing overhead costs that occurred during the period totaled $2,000 of which $800 was paid and the remainder was on account.
10. Jobs 400, 401, and 402 were completed this period. Total the job cost sheets and prepare necessary journal entry.
11. Job 400 was sold on account for $33,500; job 401 was sold for $48,000 cash; job 402 was sold for $41,000 of which 40% was paid and the remainder was on account. Hint: you can record the sale of each job separately.
12. Calculate over or under applied overhead for the period.
13. Prepare the adjusting entry for manufacturing overhead.