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Management Accounting PT Unite specializes in manufacturing a unique bicycle helmet. The model is specifically designed for each customer. The company has enough orders to

Management Accounting
PT Unite specializes in manufacturing a unique bicycle helmet. The model is specifically designed for each customer. The company has enough orders to keep the factory production at 10.000 helmets per month (80% of its full capacity). Unites' monthly manufacturing cost and other expense data are as follows:
Incurred rent on factory equipment
$9.000
Incurred insurance on factory building
1.500
Purchase raw materials on account
75.000
Incurred utility costs for factory
900
Purchase supplies for general office in cash
300
Incurred wages for assembly line workers
53.000
Accrued deprecitiation on office equipment
800
Purchase miscellaneous materials (glue, thread, etc) on account 1.100
Paid factory manager salary 5.700
Paid property taxes on factory building
400
Paid advertising for helmets for 3 months
14.000
Paid sales commissions
10.000
Accrued depreciation on factory building
1.500
Assume PT Unite currently produce two models of helmet: road and mountain. Road helmet uses 55% of raw materials purchased 3.700 direct labor hours. Meanwhile, the mountain helmet uses 35% of raw material purchased and 4.000 direct labor hours. Predetermined overhead rate is 240% of direct labor hours. There is no beginning balance for both models. They are also sold at the end of the period. The sales revenue of road helmet is 140% of its total cost. Meanwhile the sales revenue of
mountain helmet is 145% of its total cost. . The sales were made on account
Instruction;
2. Prepare journal entries for the completion of all helmets, the sale of the jobs. and adjustment of over/under-applied manufacturing overhead.
3. Determine the gross profit from the sale of the helmets.

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