On 1/1/2020 Abbott Lamp Corporation starts doing business and it is a manufacturer of Mountain Dew, Sprite and Coca-cola Lamps.

Abbott Lamp Corporation begins 2020 with the following Balance Sheet:

Cash $10,000 Accounts Payable 0

A/R 0 Loan Payable 0

Inventory 0 Contributed Capital $10,000

PP&E 0 Total Liabilities + Owners Equity $10,000

Total Assets $10,000

Other 2020 estimated information is as follows:

Utilities $1,200

Indirect Materials/grease $200

Rent on production facility $400

Depreciation on factory equipment $200

REQUIRED:

1. Abbott allocates overhead based upon direct labor hours (DLH). Estimate the OVERALL predetermined overhead rate. Abbott estimates that it will incur 500 dlh for year.

2. On 1/1/20, ALC obtains a lamp-making machine for $1000 on account. It has a 0 salvage value and a useful life of 5 years. Please give the journal entry to describe this transaction.

3. On 1/1/20, ALC purchased 500 lbs (pounds) of grease at $2/pound ON ACCOUNT. (Please give this journal entry.

4. On 1/1/20, ALC purchases on account 100 Mountain Dew Cans for $100. It also purchases on account 100 Coca-Cola Cans for $100. It also purchases on account 100 SPRITE cans for $100. Please give the journal entry to record this transaction.

5. On 1/1/20, ALC purchases on account 100 pieces of paper for $100. Please give the journal entry to describe this transaction.

6. During the year, ALC Mountain Dew Lamp workers, requisitioned out 10 Mountain Dew Cans and 5 pieces of paper. Give the journal entry to describe this transaction.

7. During the year, ALC Coca-Cola Lamp workers requisitioned out 10 Coca-Cola cans and 10 pieces of paper. Give the journal entry.

8. During the year, ALC Sprite Lamp workers requisitioned out 10 Sprite cans and 5 pieces of paper. Give the journal entry.