LOT EXERCISE 17.3 Riverside Engineering is a machine shop that uses job order costing. Overhead is applied to indi- through Journal Entries in Job vidual jobs at a predetermined rate based on direct labor costs. The job cost sheet for job no. 321 Order Costing appears below. LOS JOB COST SHEET JOB NUMBER: 321 DATE STARTED: May 10 PRODUCT: 2" Brass Check Valves DATE COMPLETED: May 21 UNITS COMPLETED: 4.000 Direct materials used $ 7,720 Direct labor..:.. . 1,400 Manufacturing overhead applied 3,080 Total cost of job no. 321 .. ... . $12,200 Unit cost ($12,200 + 4,000 units) 3.05Count Pan 784 Chapter 17 Job Order Cost Systems and Overhead Allocations Prepare general journal entries to: . Summarize the manufacturing costs charged to job no, 321. (Use one compound entry.) I. Record the completion of job no. 321. c. Record the credit sale of 2,100 units from job no: 321 at a unit sales price of $5. Record in a separate entry the related cost of goods sold. EXERCISE 17.4 During June. Assembly Department no. 4 of Riverview Electronics produced 12,000 model 201 Overhand computer keyboards. Assembly of these units required 1,476 hours of direct labor at a cost of Cost Drivers: $26,400, direct materials costing $318,960, and 2,8:80 hours of machine time. Based on an analysis Determination and of overhead costs at the beginning of the year, overhead is applied to keyboards using the following Use of Unit Cost formula: Overhead = 75%% of Direct Labour Cost + $32 per Machine Hour n. Compute the total amount of overhead cost applied to the 12,000 keyboards. b, Compute the per-unit cost of manufacturing these keyboards. c. Briefly explain why the department might use two separate activity bases in applying over C head costs to one type of product. d. Identify at least two types of overhead cost pools that might be "driven" by each of the two cool drivers indicated in this situation. c. What appears to be the primary driver of overhead costs in the manufacture of keyboards? 1611 AM O