Management Accounting problem

Sam Company uses job-order costing system to record and track the costs of its projects. The following information is provided for the decorating projects in January 2020: Project AQ01 Project AQ02 Direct labour hours 300 450 Machine hours 100 120 Direct materials $108,000 $150,000 Direct labour cost $520,000 $480,000 There was no work in process at the beginning of January 2020. Actual manufacturing overhead costs were $36,000 for January 2020. Sam computes its predetermined overhead rate annually on the basis of machine hours. At the beginning of 2020, Sam estimated that its total manufacturing overhead would be $900,000, the total direct labour cost would be $6,000,000, and the company would work a total of 40,000 direct labour hours and 5,000 machine- hours on all projects. Required: (a) Project AQ01 was successfully completed and sold on 31 January 2020. Determine the job cost of Project AQ01 and its contract price if the markup percentage of this job is 50%. (5 marks) (b) Assume that the company allocates any underapplied or overapplied manufacturing overhead to work in process, finished goods and cost of goods sold on the basis of 2:2:6, prepare the adjusting entry to show the allocation for January 2020. (8 marks)