(Need help for questions 11-19)

Abbott Lamp Corporation manufactures BOTH Mountain Dew Lamps AND Coca-Cola Lamps, starts 1/1/20. On 1/1/20, Erin Rogers ESTIMATES the following MOH costs:

Utilities $4,000

Depreciation $60,000

Indirect Materials $6,000

Rent $40,000

Abbott Lamp Corporation uses MACHINE HOURS to allocate overhead.

Erin Rogers also estimates a total of 10,000 machine hours.

1. Compute the Predetermined Overhead rate.

MOH/machine hours = $11

2. On 1/1/20, ALC obtains a lamp-making machine for $300,000 on account. It has a 0 salvage value and a useful life of 5 years. Please give the journal entry to describe this transaction.

Machines 300,000

Account Payable 300,000

3. On 1/1/20, ALC purchases on account 100 Mountain Dew Cans for $100; 200 Coca-Cola Cans for $1,000. Please give the journal entry.

Inventory- Mountain Dew Cans 100

Inventory- Coca-Cola Cans 1000

Accounts Payable 1100

4. On 1/1/20, ALC purchases on account 1,000 pieces of paper for $1,000. Please give the journal entry to describe this transaction.

Inventory- Papers 1,000

Accounts Payable 1000

5. On 1/1/20, ALC purchased for cash 1,000 pounds of grease for $10,000 worth of grease.

Inventory- grease 10,000

Cash 10,000

6. During the year, ALC Mountain Dew Lamp workers, requisitioned out 100 Mountain Dew Cans, 50 pieces of paper and 600 pounds of grease. Give the journal entry.

WIP- Mountain Dew 100

WIP- Paper 50

WIP- Grease 600

Inventory Mountain Dew 100

Inventory Paper 50

Inventory Grease 600

7. During the year, ALC Coca-Cola Lamp workers requisitioned out 100 Coca-Cola cans and 50 pieces of paper. Give the journal entry.

WIP- Coca-Cola 500

WIP- Paper 50

Inventory- Coca Cola 500

Inventory Paper 50

8. During the year, ALC paid the following to its workers (in cash):

Administrative Salaries to CEO, accountant, etc.. $2,000

Mountain Dew Lamp workers for direct labor (800 dlh * $5/dlh) $4,000

Coca-Cola Lamp workers for direct labor (1000 dlh * $10/dlh) $10,000

Give the journal entry.

MOH 2,000

WIP- Mountain Dew 4,000

WIP- Mountain Dew 10,000

Cash 16,000

9. Apply overhead and give appropriate journal entry(ies). Mountain Dew Lamps used 5,500 machine hours and Coca-cola lamps used 4,000 machine hours.

WIP- Mountain Dew 60,500

WIP- Coca-Cola 44,000

MOH 104,500

10. The Mountain Dew Lamp workers started and completed all 100 Mountain Dew Lamps. The 100 Mountain Dew Lamps were transferred to finished goods. Give the journal entry and use a JOB COST SHEET TO CREATE A COST OF GOODS MANUFACTURED.

Mountain Dew lamps 64,600

WIP- Mountain Dew 64,600

11. Coca-cola Lamp workers started and completed all 100 Coca-Cola Lamps. The 100 Coca-cola Lamps were transferred to finished goods. Give the journal entry to describe this transaction use a JOB COST SHEET TO CREATE A COST OF GOODS MANUFACTURED.
12. During the year, ALC sold 50 Mountain Dew Lamps ON ACCOUNT for $800/lamp. Give the journal entry to describe this transaction.
13. During the year, ALC sold 80 Coca-Cola Lamps for $1,000/lamp (or $80,000 total) in CASH. Give the journal entry to describe this transaction.
14. During the year, ALC paid CASH for the following:

Rent for office building $6,000

Rent for manufacturing building $42,000

Give the journal entry.

15. During the year, ALC paid CASH the following UTILITY bills:

Utilities for office building $6,000

Utilities for manufacturing building $16,000

Give the journal entry.

16. Give any ADJUSTING journal entries needed on 12/31/20.
17. Is MOH OVER or UNDER-applied? IF so, indicate by how much.
18. Provide the journal entry to close the MOH clearing account (and please close the over/under applied overhead to COGS).
19. Create the 5-line 2020 income statement by using all of your journal entries from 1-18