Morrisville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead based on direct labor hours. The budgeted factory overhead for the year was $1,477,000, and management budgeted 93,500direct labor hours. Mooresville had no material. Work-in-Process, Or finished goods inventory at the beginning of August. These transactions were recorded during August.

1. I purchased 6,300 square feet of oak on account at $26 per square foot.
2. Purchased 180 gallons of glue on account at $36 per gallon (indirect material)
3. She requisitioned 4,410 square feet of oak and 44 gallons of glue for production.
4. We incurred and paid pyro costs of $215,200. Of this amount, $59,000 were indirect labor costs. Direct labor personnel earned $22 per hour.
5. Paid factory utility, $17,440 in cash
6. August's insurance cost for the manufacturing property and equipment was $4150. The premium had been paid in March.
7. We incurred $9,345. Depreciation on manufacturing equips for August.
8. We recorded $2,725in depreciation on an administrative asset.
9. I paid advertising expenses in cash, $6085.
10. Incurred and paid other factory overhead costs, $14,800
11. incurred miscellaneous selling and administrative expenses,$14,225
12. Applied factory overhead to production based on direct labor hours
13. Produced com; edited goods costing $152,500 during the Month.
14. Sales on account in August were $142,800. The cost of goods sold was $118,500.

Answers the following questions

1. Compute the firm's predetermined factory overhead rate for the year
2. Prepared journal entries to record the August events
3. Calculate the amount of overapplied or underapplied overhead fog e close to the schedule of cost of goods manufactured on August 31
4. Prepare a schedule of the cost of goods manufactured and cost of goods.
5. Compute the amount of overapplied or underapplied overhead that should be prorated to work-in-process, finished goods, and cost of goods sold
6. Prepare the income statement for August

Complete the following question by entering your answers in the table below.

Complete the firm's predetermined factory overhead rate for the year.

1. Predetermined overhead rate ______________Per direct labor-hour
2. work on the journal entries to record the events
3. Purchased 6,300 square feet of oak on account at $26 per square
4. Purchased 180. gallons of glue on account at $36 per gallon(indirect material.)
5. They requested 4,410 square feet of oak and 44 gallons of glue for production.
6. They were incurred and paid a payroll cost of $215,200. Of this amount, $59,000. There were indirect labor costs; direct labor personnel earned $22 per hour.
7. Paid factory utility bill, $17,440 in cash
8. August's insurance cost for the manufacturing property and equipment was $4,150. The premium had been paid in March.
9. We incurred $9,345 depreciation on manufacturing equipment for August.
10. Recorded $2,725. Depreciation on an administrative asset
11. I paid advertising expenses in cash, $6,085.
12. We incurred and paid other factory overhead costs, $14,800.
13. We incurred and paid miscellaneous selling and administrative expenses,$14,225.
14. We applied factory overhead to production based on direct labor hours.
15. Produced completed goods costing $152,500 during the Month
16. Sales on account in August were $142,800.
17. The cost of goods sold was $118,500.

Journal Entry Worksheet

Transaction	General Journal	Debit	Credit
N1

1. Calculate the amount of overapplied or underapplied to be closed to the cost of goods sold account on August 31

1. Make a schedule of goods manufactured.

Mooresville Corporation

Statement of cost of goods manufactured.

For the Month ended August 31

Direct Material
Total Direct Material
Direct Material Used
Total Manufacturing cost incurred during the year
Total Manufacturing cost to account for
Cost of goods Manufactured
Actual Overhead

4BMake a schedule of goods sold.

Mooresville corporation

Schedule of Cost of goods sold.

For the Month ending August 31

Finished goods beginning inventory
Cost of Goods Sold
Total goods available for sale
Finished goods ending inventory
Cost of goods sold

1. Complete the overapplied or underapplied overhead that should be prorated to work-in-process, finished goods.

Relative Amount	%	Share of Overapplied Overhead
	%
	%
	%
	%

1. Prepare the income statement for August.

Mooresville corporation

Income Statement

For the Month Ended

August 31

Total Selling and Administrative expense