Instructions:Problem $8$ continued

$($a$)$

$($b$)$ and $($c$)$

Job Cost Sheets

Prepare entries in a job order cost system and job cost sheets.

Regan Company uses a job order cost system and applies overhead to production on the basis of

direct labor costs. On January $1,2017,$ Job $50$ was the only job in process. The costs incurred prior

to January $1$ on Job $50$ are recorded on the job cost sheet. The total cost of completed job $49$ was $$110,000.$

During the month the following activity occurred:

Began Jobs $51$ and $52.$

Completed Jobs $50$ and $51.$

Jobs Sold: Selling Price

$49$ $ $135,700$

$50$ $ $195,000$

The following additional events occurred during the month.

$1$ Purchased additional raw materials of $$125,000$ on account.

$2$ Incurred manufacturing overhead costs as follows: indirect materials $$27,000,$ indirect labor

$$25,000,$ depreciation expense on equipment $$18,000,$ and various other manufacturing

overhead costs on account $$17,000.$

$3$ Assigned direct materials and direct labor to jobs as follows.

Job No$.$

Direct

Materials Direct Labor

$5015,00010,000$

$5143,00037,000$

$5233,00024,000$

Instructions

$($a$)$ Calculate the predetermined overhead rate for Bau using applicable data listed below:

Estimated Manufacturing Overhead costs $$833,750$

Estimated Direct Labor Costs $$725,000$

$($b$)$ Prepare the journal entries to record the purchase of raw materials, the factory labor costs

incurred, and the manufacturing overhead costs incurred during the month of January.

$($c$)$ Prepare the journal entries to record the assignment of direct materials, direct labor, and

manufacturing overhead costs to production. In assigning manufacturing overhead costs, use

the overhead rate calculated in $($a$).$ Post all costs to the job cost sheets as necessary.

$($d$)$ Total the job cost sheets for any job$($s$)$ completed during the month. Prepare the journal

entry $($or entries$)$ to record the completion of any job$($s$)$ during the month.

$($e$)$ Prepare the journal entry $($or entries$)$ to record the sale of any job$($s$)$ during the month.

$($f$)$ What is the amount of over$-$ or underapplied overhead? Complete the journal entry. Problem $8$ continued

$($a$)$

$($b$)$ and $($c$)$

Job Cost Sheets

JOB NO$.50$ JOB NO$.51$

Manu$-$ ManuDirect Direct facturing Direct Direct facturing

Materials Labor Overhead Date Materials Labor Overhead

$ $42,750$ $ $22,500$ $ $25,875$ Jan.

Cost of completed job Cost of completed job

Total Cost Total Cost

JOB NO$.52$

ManuDirect Direct facturing

Materials Labor Overhead

$$20,000$ x $120\%$

Date

Jan Problem $8$ concluded

Debit Credit

$($b$)1.$

$2.$

$($c$)$

$($e$)$

$($e$)$

$($f$)$

$($f$)$

Actual Applied

Account Titles

MANUFACTURING OVERHEAD