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O'Leary Corporation manufactures special-purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only bulids to order (each unit is

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O'Leary Corporation manufactures special-purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only bulids to order (each unit is buit to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $21 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: At the beginning of Year 3, OLLeary has two jobs, which have not yet been delivered to customers, Job MC-270 was compieted on December 27, Year 2. It is scheduled to ship on January 7. Year 3. Job MC-275 is still in progress. For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct materials costs and direct laborhours for these jobs in Year 2 follow: During Year 3, O'Leary incurred the following direct materials costs and direct labor-hours for all jobs worked in Year 3, including the completion of Job MC-275: At the end of Year 3, there were four jobs that had not yet shipped, Date on these jobs follow: At the end of Year 3, there were four jobs that had not yet shipped, Data on these jobs follow: Required: a. What were the amounts in the beginning Finished Goods and beginning Work-in-Process accounts for Year 3 ? b. O'Leary incurred direct materials costs of $57,800 and used an additional 380 hours in Year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? c. What was over-or underapplied overhead for Year 3? 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. e. A customer has asked O'Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,900 in direct materials and 5,040 direct labor-hours. Because of the economy. O'Leary expects demand 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? Complete this question by entering your answers in the tabs bilow. What were the amounts in the beginning Finished Goods and beginning Work-in-Process accounts for Year 3 ? O'Leary incurred direct materials costs of $57,800 and used an additional 380 hours in Year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? Complete this question by entering your answers in the tabs below. What was over- or underapplied overhead for Year 3? O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-II Prepare the journal entry to prorate the Over-or Underapplied Overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Journal entry worksheet Record the entry to prorate any over-or underapplied overhead. Note: Enter debits before credits. A customer has asked O'Leary to bid on a job to be completed in Year 4 . O'Leary estimates that the job will require about $92,900 in direct materials and 5,040 direct labor-hours. Because of the economy, O'Leary expects demand 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? O'Leary Corporation manufactures special-purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only bulids to order (each unit is buit to customer specifications). O'Leary uses a normal job costing system. Direct labor at O'Leary is paid $21 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: At the beginning of Year 3, OLLeary has two jobs, which have not yet been delivered to customers, Job MC-270 was compieted on December 27, Year 2. It is scheduled to ship on January 7. Year 3. Job MC-275 is still in progress. For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct materials costs and direct laborhours for these jobs in Year 2 follow: During Year 3, O'Leary incurred the following direct materials costs and direct labor-hours for all jobs worked in Year 3, including the completion of Job MC-275: At the end of Year 3, there were four jobs that had not yet shipped, Date on these jobs follow: At the end of Year 3, there were four jobs that had not yet shipped, Data on these jobs follow: Required: a. What were the amounts in the beginning Finished Goods and beginning Work-in-Process accounts for Year 3 ? b. O'Leary incurred direct materials costs of $57,800 and used an additional 380 hours in Year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? c. What was over-or underapplied overhead for Year 3? 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. e. A customer has asked O'Leary to bid on a job to be completed in Year 4. O'Leary estimates that the job will require about $92,900 in direct materials and 5,040 direct labor-hours. Because of the economy. O'Leary expects demand 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? Complete this question by entering your answers in the tabs bilow. What were the amounts in the beginning Finished Goods and beginning Work-in-Process accounts for Year 3 ? O'Leary incurred direct materials costs of $57,800 and used an additional 380 hours in Year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? Complete this question by entering your answers in the tabs below. What was over- or underapplied overhead for Year 3? O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-II Prepare the journal entry to prorate the Over-or Underapplied Overhead. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld. Journal entry worksheet Record the entry to prorate any over-or underapplied overhead. Note: Enter debits before credits. A customer has asked O'Leary to bid on a job to be completed in Year 4 . O'Leary estimates that the job will require about $92,900 in direct materials and 5,040 direct labor-hours. Because of the economy, O'Leary expects demand 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

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