Northwest Outdoor Furniture (NOF) manufactures wood patio furniture. The company's largest client requested customized wood patio furniture. The request was labeled as Job ID #808 and required $200,000 in direct materials, $220,000 in direct labor, and 11,000 direct labor hours.

Northwest Outdoor Furniture (NOF) allocates overhead cost to the job on the basis of direct labor hours worked. For the current year, NOF estimates that it would require 16,000 direct labor hours and incur $400,000 of manufacturing overhead. The following transactions were recorded for the year:

1. Purchased $500,000 of raw material on account.
2. 90% of the raw materials purchased were put into production. These raw materials include $360,000 of direct materials and $90,000 of indirect material.
3. NOF incurred $450,000 for direct labor and $205,000 for indirect labor.
4. During the period, NOF had also incurred the following factory costs: $95,000 for utilities, $25,000 for supplies and $94,500 for machine rental.
5. NOF recognized $70,000 in depreciation of factory equipment.
6. Journalize the allocation of manufacturing overhead to Job ID #808, using your findings in Part A below for the MOH at 11,000 hours.
7. $1,205,000 of the job was completed by the end of the period.
8. The customized wood patio furniture was sold on account for $1,900,000. The cost to manufacture these products was $1,035,000

Required (Excel Template Provided download): (Module Learning Outcomes LO4.4 through LO4.7 AND Course Learning Outcome #1 & #2)

1. Calculate the total amount of manufacturing costs recorded to Job ID #808 (see paragraph 1 for this) -- HINT: First calculate the Predetermined Overhead Rate using information in paragraph #2 above. (use T-Account tab -- show calculations on the side or below the T-Accounts).
2. Prepare all the necessary journal entries, except closing the balance on the Manufacturing Overhead account. Use the related numbers from above in the date column for the journal entries (use Journal Entries tab).
3. In addition to the 11,000 direct labor hours incurred to complete Job ID #808, the company also incurred 12,500 direct labor hours to complete other jobs in the same period. Determine whether the total Manufacturing Overhead has been over- or underallocated (use T-Account tab and update Manufacturing Overhead for the additional MOH from the other direct labor hours incurred).
4. Prepare a journal entry to close any balance in the manufacturing overhead account to cost of goods sold (use Journal Entries tab).