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P3-31A) Bertrand Manufacturing uses a job-order cost system and spplies overhead to production on the basis of direct (S81.1.U were as follows: direct materials $30,000,

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P3-31A) Bertrand Manufacturing uses a job-order cost system and spplies overhead to production on the basis of direct (S81.1.U were as follows: direct materials $30,000, direct labour $15.000, and manufacturing overhead $20.000. As of January 1,. Job job-order cost system uirect labour hours, uing a Hot Tabour costs. On January 1, 2016, Job No. so was the only job ih process. The cests incurred prior to January 1 on this job Prepare entries in a No. 49 had been completed at a cost of $120,000 and was part of finished goods inventory. There was a $25,000 balance in and job cost sheets. the Raw Materials Inventory account. During the month of January, Bertrand Manufacturing began production on Jobs S1 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $152,000 and $198,000, respectively. The following additional events occurred during the month: 1. Bertrand purchased additional raw matrials of $100,000 on account, 2. It incurred factory labour costs of $75,000. Of this amount, $18.000 related to employer payrol ta o 3. It incurred manufacturing overhead costs as follows: indirect materials S18.000, indirect labour $1700. deyiee expense $14,000, and various other manufacturing overhead costs on account $22,000. 4. It assigned direct materials and direct labour to jobs as follows: Direct Materlals $12,000 42,600 Job No. Direct Labour $ 7,000 50 51 28,000 52 35,000 22,000 Instructions (a) Calculate the predetermined overhead rate for 2016, assuming Bertrand Manufacturing estimate 0 l manufacturing overhead costs of $1.5 million, direct labour costs of $750,000, and direct labour hours of 20,00 ton year. (b) Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for oD No. 50. (c) Prepare the journal entries to record the purchase of raw materials, the factory labour costs incurred, and the manu- facturing overhead costs incurred during the month of January. (d) Prepare the journal entries to record the assignment of direct materials, direct labou., and manufactu.ing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated iu part (a). Post all costs to the job cost sheets as necessary. (e) Total the job cost sheets for any job(s) completed during the month. Prepare the journa! entry (or entries) to record (e) Job 50: $98,01 the completion of any job(s) during the month. Job 51: $126

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