O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $18 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows: Year 1 70,700 Year 2 55,700 S $ Direct labor hours worked Manufacturing overhead costs incurred Indirect labor Employee benefits Supplies Power Heat and light Supervision Depreciation Property taxes and insurance Total manufacturing overhead costs 2.777.000 1,052,000 707.000 553,700 139.700 717,950 1,984,200 752.950 8,684.500 2,732,500 827,000 557,000 583,700 139,700 777.950 1.984.200 752,950 8.355.000 At the beginning of year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-270 was completed on December 27, year 2. It is scheduled to ship on January 7, year 3. Job MC-275 is still in progress. The predetermined rate in year 2 was $140 per direct labor hour. Data on direct material costs and direct labor-hours for these jobs in year 2 follow: Direct material costs Direct labor-hours Job MC 270 $ 271,700 2,670 hours Job MC 275 $ 496,700 3.370 hours During year 3, O'Leary incurred the following direct material costs and direct labor hours for all jobs worked in year 3, including the completion of Job MC-275. $ Direct material costs Direct labor-hours Actual manufacturing overhead 12,010,000 75,700 9,103,000 $ For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. At the end of year 3, there were four jobs that had not yet shipped. Data on these jobs follow: Direct materials Direct labor-hours Job status MC-389 $44,900 1,910 hours Finished MC-390 $68,700 1,875 hours Finished MC-397 $105,200 4,586 hours in progress MC-399 $30,500 1,470 hours in progress Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-process accounts for year 3? Work-in-process inventory Finished goods inventory b. O'Leary incurred direct materials cost of $58,700 and used an additional 317 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-2757 Final (total) cost charged c. What was over- or underapplied overhead for year 3? overhead d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process Inventory. Prepare the journal entry to prorate the Over- or Underapplied Overhead. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the entry to prorate any over- or underapplied overhead. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal e. A customer has asked O'Leary to bid on a job to be compleled in year 4. O'Leary estimates that the job will require about $94,200 in direct materials and 5,170 direct labor-hours. Because of the economy. O'Leary expecls cernand for its Services to be low in year 4, and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? (Do not round intermediate calculations.) Minimum amount O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only builds to order (each unit is built to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $18 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows: Year 1 70,700 Year 2 55,700 S $ Direct labor hours worked Manufacturing overhead costs incurred Indirect labor Employee benefits Supplies Power Heat and light Supervision Depreciation Property taxes and insurance Total manufacturing overhead costs 2.777.000 1,052,000 707.000 553,700 139.700 717,950 1,984,200 752.950 8,684.500 2,732,500 827,000 557,000 583,700 139,700 777.950 1.984.200 752,950 8.355.000 At the beginning of year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-270 was completed on December 27, year 2. It is scheduled to ship on January 7, year 3. Job MC-275 is still in progress. The predetermined rate in year 2 was $140 per direct labor hour. Data on direct material costs and direct labor-hours for these jobs in year 2 follow: Direct material costs Direct labor-hours Job MC 270 $ 271,700 2,670 hours Job MC 275 $ 496,700 3.370 hours During year 3, O'Leary incurred the following direct material costs and direct labor hours for all jobs worked in year 3, including the completion of Job MC-275. $ Direct material costs Direct labor-hours Actual manufacturing overhead 12,010,000 75,700 9,103,000 $ For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. At the end of year 3, there were four jobs that had not yet shipped. Data on these jobs follow: Direct materials Direct labor-hours Job status MC-389 $44,900 1,910 hours Finished MC-390 $68,700 1,875 hours Finished MC-397 $105,200 4,586 hours in progress MC-399 $30,500 1,470 hours in progress Required: a. What was the amount in the beginning Finished Goods and beginning Work-in-process accounts for year 3? Work-in-process inventory Finished goods inventory b. O'Leary incurred direct materials cost of $58,700 and used an additional 317 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-2757 Final (total) cost charged c. What was over- or underapplied overhead for year 3? overhead d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-in-Process Inventory. Prepare the journal entry to prorate the Over- or Underapplied Overhead. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the entry to prorate any over- or underapplied overhead. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal e. A customer has asked O'Leary to bid on a job to be compleled in year 4. O'Leary estimates that the job will require about $94,200 in direct materials and 5,170 direct labor-hours. Because of the economy. O'Leary expecls cernand for its Services to be low in year 4, and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? (Do not round intermediate calculations.) Minimum amount