Managerial Accounting Chap 2 HW Name Company A had the following transactions in January. All went to one job. 1. Purchased Raw Materials on account for 75,000 2. 40,000 of Raw materials were issued from the stockroom to manufacturing. Of this total 5,000 was indirect material and 35,000 was direct material 3. Salaries paid to factory workers was 60,000. All was paid in cash, ignore payroll taxes. 4. Labor was charged to Work in Process. 50,000 was direct and 10,000 indirect labor. 5. Factory rent of 30,000 and utility bills for 10,000 for the month were PAID. Both are manufacturing OH costs. 6. Manufacturing overhead is applied based on direct labor cost. The budget estimated 500,000 in direct labor cost and 1,000,000 in overhead costs. Calculate the predetermined OH rate. 7. Make the entry to apply erhead to Work in m 8. Goods costing 70,000 were completed and transferred to finished goods 9. Finished goods which cost 72,000 to manufacture were sold for 110,000 10. What is the over or under applied overhead Account Amount 1 Debit Credit 2 Debit Credit 3 Debit Credit 4 Debit Credit 5 Debit Credit 7 Debit Credit 8 Debit Credit 9 Debit Credit