I need help with question 4.32

R 4 Product Costs and Job Order Costing 4.32 (LO 1, 2, 3, 4, 5, 6) Comprehensive problem Maverick Wings, Inc. manufactures airplanes for b. Prepare the journal entries to record Maverick's costs for 2021. use in stunt shows . Maverick's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features c. Prepare the appropriate T-accounts for Raw Materials Inventory, Work-in-Process Inventory, Fin- ( such as its shape, weight, and color ), Maverick uses a job order costing system to accumulate product costs. ished Goods Inventory, Manufacturing Overhead Control, Cost of Goods Sold, and Sales, and record At the end of 2020, Maverick's accountants developed the following expectations for 2021 based on Maverick's transactions for 2021. Calculate e ending balance in each account. the marketing department's sales forecast: d. Was manufacturing und er- or overapplied in 20217 By how much? e . Make the adjusting entry $1.050.000 necessary to close the under- or overapplied overhead to cost of goods sold. Budgeted overhead cost Estimated machine hours 50.000 F. If Maverick chooses instead to prorate under- or overapplied overhead, how much would be Estimated direct labor hours 10.000 allocated to Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold for 2021? Estimated direct materials cost $1,500,000 g. Job 3827 was started and completed in 2021. The job required 500 machine hours, 300 direct labor hours , and $75,000 in direct materials to complete. What was the total cost of this job? Using May- Maverick's inventory count, completed on December 31, 2020, revealed the following ending inventory erick's 150% markup, what sales price would be charged for this airplane? balances: h. If Maverick had chosen to use machine hours as its overhead application base, what would the rate Raw Materials Inventory $ 75,800 have been in 2021? Why would that application base have been a logical choice for Maverick? Work in Process Inventory $626,000 Finished Goods Inventory $340,000 The company's 2021 payroll data revealed the following actual payroll costs for the year : Cases Annual Total Hours Number Wage Rate Salary per Worked per Job Title Employed per Hour Employee Employee President and CEO $225,000 C&C Sports Continuing Case Vice president and CFO $178,000 Factory manager $ 48,000 4.33 (LO 3, 4, 5, 6) Inventory cost flows C&C Sports has determined the following unit costs for $ 35,000 each of its products : Assistant factory manager Machine operator $20.00 2,250 Pants Jerseys Jackets Security guard, factory $ 25,000 2,000 Direct materials $ 6.00 $10.00 $ 58.00 Forklift operator + NNMN $15.00 Direct labor 4.00 3.20 24.00 Corporate secretary $ 35,000 Manufacturing overhead 5.00 4.00 30.00 Janitor, factory $12.00 2,150 Total unit cost $15.00 $17.20 $112.00 The following information was taken from Maverick's Schedule of Plant Assets. All assets are depreciated sales price per unit $19.00 22.00 $175.00 using the straight-line method. Plant Asset Purchase Price Salvage Value Useful Life On May 31, C&C Sports' Work in Process Inventory consisted of the following items: Factory building $4.000,000 $150.000 20 Years Job Units Accumulated Cost Administrative office $ 650,000 $125,000 30 Years PA-1247-Pants 100 $1,050 Factory equipment $2,000,000 S 20,000 12 Years JE-1397-Jerseys 200 2,720 JA 426-Jackets 4,250 Other miscellaneous costs for 2021 included : $8.020 Cost Amount Factory insurance $14,000 During June, a total of $253,800 in direct materials and $123,380 in direct labor costs were incurred. Administrative office utilities 6.000 Units finished and sold during June were as follows: Factory utilities $32,000 Product 5,000 Units Finished Units Sold Office supplies Pants 13,500 4,000 Additional information about Maverick's operations in 2021 includes the following: Jerseys 3,200 3,100 . Raw materials purchases for the year amounted to $1,945,000. Jackets 2.500 2,500 The company used $1,924,000 in raw materials during the year. Of that amount, 80% was direct mate- Required rials and 20% was indirect materials. a. Given that C&C Sports uses direct labor dollars as its application base, what is the company's Maverick applied overhead to Work in Process Inventory based on direct materials cost. predetermined overhead rate? Airplanes costing $2,870,000 to manufacture were completed and transferred out of Work in Process b. Calculate the total manufacturing cost for June. Inventory. C. Calculate the Cost of Goods Manufactured for June. Maverick uses a markup of 150% to price its airplanes. Sales for the year were $7,250,000. (Note: This d. Calculate the Ending Work in Process Inventory balance on June 30. transaction requires two journal entries.) e. Calculate Cost of Goods Sold for June. Required f. Calculate Gross Profit for June. Use the information just given to answer the following questions: g. For each of the three products, state whether there are more, fewer, or the same number of fin- a. What was Maverick's predetermined overhead rate in 2021? ished units in Finished Goods Inventory on June 30 than there were on June 1