INSTRUCTIONS: Welcome to Module 5. Below are two questions; you only need to answer one. Remember to respond in essay format (except when calculations need to be shown mathematically...for mathematical calculations, please show all your steps). Be detailed and clear. Support your answer with applicable sources.

Note: Discussion entries and comments must be substantive and detailed.

As usual, creativity is highly rewarded.

Note: How to show your work (minimum steps): Step 1: Show the formula: e.g.: POHR = Total Estimated MOH / Total Estimated Allocation Base Step 2: Apply values to the formula: = $400,000 / 20,000 DLHs

Step 3: Solve = $20.00 per DLH

REQUIRED:

1. What is the predetermined overhead rate for 2018 for Department 203?
2. Apply overhead to each of the jobs worked on in 2018.
3. Jobs 1376 and 1377 were completed during 2018. The jobs yielded 5,000 and 3,000 units of product, respectively. What was the unit cost for each of these products?
4. What is the value of work in process inventory on 12/31/2018? What jobs are included?
5. Was overhead over- or under applied for 2018 in Department 203? By how much?

QUESTION 1: MASCOH (Mueller, Avenatti, Stormy, Cohen, Omarosa, and Huckabee) Associates provided the following data for Department 203 for 2018. Work in process as of 1/1/2018: Job No. Material Labor Overhead Total 1376 $ 17,500 $ 22,000 $33,000 $ 72,500 Actual costs incurred by Department 203 during 2018: By Job: 1376 $11,000 $ 7,000 $ 8,000 1377 26,000 53,000 79,000 1378 12,000 9,000 21,000 1379 4,000 1,000 5,000 TOTAL $ 43,000 $ 70,000 Not incurred by job: Indirect Materials $15.000 Indirect Labor 53,000 Employee Benefits 23,000 Depreciation 12,000 Supervision 20,000 TOTAL $123,000 Department 203 Overhead Budget for 2018: Indirect Materials $ 16.000 Indirect Labor 56,000 Employee Benefits 24,000 Supervision 20,000 Depreciation 12,000 TOTAL $128.000 Budgeted Direct Labor Dollars $ 80,000 Balances at 12/31/2018, before disposition of over/under applied overhead: Finished Goods Inventory $106,000 Cost of Goods Sold 852,000 Overhead is applied based on direct labor dollars. QUESTION 2: ISCRNP (Is SC Really Non-Partisan?) Corporation began operations on October 2, 2018. The following activity took place in the work in process account for the month of October: Direct materials Direct labor Manufacturing OH Work in Progress 10,000 To finished goods 79,000 30,000 45,000 ISCRNP Corporation uses a job order costing system, and applies manufacturing overhead to work in process on a basis of direct labor cost. At the end of October, only one job was still in process. This job (Job 15) has been charged with $2,000 in direct materials cost. REQUIRED: Complete the following job cost sheet for partially completed Job 15: Job Cost Sheet-Job 15 (as of October 31, 2018) Direct materials Direct labor Manufacturing overhead Total cost Hint: Create a table similar/identical to the job-cost sheet above. Remember to show your work as an addendum