It's the second year of getting your dream company off the ground and it's been a whirlwind of

activity while you've been focusing on product development and building your customer base.

You and your management team have decided that it makes best sense to apply manufacturing overhead

to jobs based on direct labour hours, because the more hours worked the more overhead incurred

When planning and budgeting at the start of the year, here was your estimate for DL Hours $48,000$

In addition, the following information was gathered during $2024.$

January $1,2024$ Beginning inventories:

Raw Material $ $78,000$

Work in Process $ $70,000$

Finished Goods $ $65,000$

During the year, the following activities occurred:

a$.$ Total raw materials purchased $($including both direct and indirect$)$ $ $304,000$

b$.$ Management estimated manufacturing overhead costs for the year would be $ $393,000$

c$.$ Direct labour hours incurred $53,000$

resulted in total direct labour cost of $ $442,000$

d$.$ Direct materials used in production $ $223,000$

e Indirect materials used in the factory $ $30,000$

f Customized products sold to customers typically for the following price $ $5,400$

g Wages $-$ indirect $ $127,000$

h Wages $-$ selling $ $145,000$

i Wages $-$ administration $ $431,000$

j Total manufacturing costs incurred in the year $($unadjusted$)$ $ $841,000$

k The number of customized products sold to your customers during the year $400$

l$.$ Other selling and admin costs for the head office $ $37,000$

m$.$ Income tax rate $30\%$

n$.$ The value of the customized products still being worked on at the end of the year $ $112,000$

o$.$ Ending inventory for finished goods $ $36,000$

p$.$ Amortization, factory equipment $ $154,000$

q$.$ Utilities, Factory $ $105,000$

$$ 

 

REQUIRED

$1$ Calculate the predetermined overhead rate for $20242$ marks

$2$ How much manufacturing overhead should be applied to jobs during $2024?2$ marks

$3$ How much raw material remained in inventory at the end of the year? $4$ marks

$3$ Complete the T$-$account for MOH $($show the under$/$over applied balance$)5$ marks

$4$ Prepare a schedule of cost of goods manufactured $($before adjustments $12$ marks