Meranti Enterprise produces garden ponds for landscaping. The business uses normal costing system in determining production...

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Meranti Enterprise produces garden ponds for landscaping. The business uses normal costing system in determining production costs. The estimated manufacturing overhead cost is RM60,000 based on 5,000 machine hours. Information relating to three jobs in December 2020 as follows: 1. Direct materials costs, direct labour costs and machine hours for each job order are as follows: Job Oder LC1 LC2 LC3 Direct materials 5,500 Direct labour 600 Machine hours. 1201 5,800 650 150 7:250 820 230 2. Other manufacturing costs incurred during December are as follows: Items Indirect materials Indirect labour Utilities Maintenance RM 2,350 1,720 2,100 1,200 600 3. At the end of the month, only jobs Depreciation LC1 and LC2 were completed. Required: (a) Calculate the predetermined overhead rate. (1 mark) (Ans: RM12 per hour) (b) Calculate the applied manufacturing overhead cost for each job. (3 marks) (Ans: Applied OHLC1: RM1,440 LC2: RM1,800: LC3 RM2,760) (c) Determine the total costs for job LC1, LC2 and LC3. (6 marks) (Ans: Applied OH: LC1: RM7,540, LC2 RM8,250, LC3 RM10,830 Total: RM26,620) (d) Prepare the journal entries to record all transactions related to all jobs above (Omit explanation). (8 1/2 marks). (e) Prepare a journal entry to adjust the over-applied or under-applied overheads to the costs of goods sold (Omit explanation) (1 1/2 marks) Meranti Enterprise produces garden ponds for landscaping. The business uses normal costing system in determining production costs. The estimated manufacturing overhead cost is RM60,000 based on 5,000 machine hours. Information relating to three jobs in December 2020 as follows: 1. Direct materials costs, direct labour costs and machine hours for each job order are as follows: Job Oder LC1 LC2 LC3 Direct materials 5,500 Direct labour 600 Machine hours. 1201 5,800 650 150 7:250 820 230 2. Other manufacturing costs incurred during December are as follows: Items Indirect materials Indirect labour Utilities Maintenance RM 2,350 1,720 2,100 1,200 600 3. At the end of the month, only jobs Depreciation LC1 and LC2 were completed. Required: (a) Calculate the predetermined overhead rate. (1 mark) (Ans: RM12 per hour) (b) Calculate the applied manufacturing overhead cost for each job. (3 marks) (Ans: Applied OHLC1: RM1,440 LC2: RM1,800: LC3 RM2,760) (c) Determine the total costs for job LC1, LC2 and LC3. (6 marks) (Ans: Applied OH: LC1: RM7,540, LC2 RM8,250, LC3 RM10,830 Total: RM26,620) (d) Prepare the journal entries to record all transactions related to all jobs above (Omit explanation). (8 1/2 marks). (e) Prepare a journal entry to adjust the over-applied or under-applied overheads to the costs of goods sold (Omit explanation) (1 1/2 marks)