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Just please help with number 6 only! I just need help with that only! point out any mistake if you seen. Will thumbs up fast!
Just please help with number 6 only! I just need help with that only! point out any mistake if you seen. Will thumbs up fast! Thank You
Lyric Technology, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The prede- termined overhead rate in Department A is based on machine hours, and the rate in Depart- ment B is based on direct materials cost. At the beginning of the most recent year, the compa- ny's management made the following estimates for the year: Required: a.) Compute the predetermined overhead rates for Department A and Department B. Dept. A Dept.B 70,000 420,000/70,000 = 6.00 per MH DM Cost 282,000 Machine hours Manufacturing overhead 420,000 705,000 705/282,000 - 2.50 per dollar of Department B 70,000 19,000 30,000 60,000 $195,000 $282,000 $260,000 $520,000 $420,000 $705,000 Machine-hours Direct labour-hours Direct materials cost Direct labour cost Manufacturing overhead cost cost b.) Compute the total overhead cost applied to Job 243. Manufacturing Overhead Cost A = 250 hours x $6 1500 Job 243 entered into production on April 1 and was completed on May 12. The job was subse- quently sold on May 31 for $8,500. The company's cost records show the following infor- mation about the job: B = $1100 x 2.5 2750 4250 Oh6. Machine-hours Direct labour-hours Direct materials cost Direct labour cost Department B 250 60 70 120 $840 $1,100 $610 $880 Show the journal entries to record the a) applied overhead cost for this job. b) completion of this job. c) delivery of this job to the customer. At the end of the year, the records of Lyric showed the following actual cost and operating data for all jobs worked on during the year: Machine-hours Direct labour-hours Direct materials cost Manufacturing overhead cost Department B 61,000 20,000 28,000 66,000 $156,000 $284,000 $385,000 $705,000 c.) Compute the amount of underapplied or overapplied overhead in department A at the end of the current year. Part OHD Applied Actual OHI (Under) / recovery Incurred A B A-B Manufacturing Overhead in Department A $366000 $385000 (19000) under recovery (61000 hours: X $6) d.) How would Lyric adjust for the amount in c) above when completing their financial statements? Assume that all inventory accounts are properly stated. Prepare the journal entry. Cost of goods sold 19,000 To Manufacturing overhead 19.000Step by Step Solution
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