Pack Rite manufact and has a highly labour on direct labour hours. Any overhead variance is closed out to Cost of Goods Sold. ures back packs for schools. The business uses a perpetual inventory system r intensive production process, so it applies manufacturing overhead based ack Rite's pre-determined overhead application rate for 2017 was computed from the following data Total estimated factory overheads Total estimated direct labour hours $4,20o,ooo 35,000 During th i) Purchased materials on account, $500,000 ii) Incurred manufacturing wages of $1,065,00o iii) Issued direct materials and used direct labour in manufacturing e first month of 2017, the business recorded the following transactions. Direct Materials Direct Labour Direct Labour Hours Job 401 Job 402 Job 403 Job 404150,000 iOO,000 80,0009190,000 90,000 220,000 1,200 1,000 1,100 1,800 205,000 iv) Issued indirect materials to production, $80,0o0 v) Charged indirect manufacturing wages to production, $159,750 vi) Depreciation expense on factory equipment used on the different jobs, $300,0o0 vii) Other overhead costs incurred on jobs 101 to 04 amounted to $112,750 viii)Applied factory overhead tothe various jobs using the pre-determined factory overhead rate ix) Finished Jobs 1o1 103 and transferred to the finished goods inventory account x) Shipped Job 101 and 102 and billed customers at a margin of 25% on cost. Required a) Compute Pack Rite's predetermined manufacturing overhead rate. b) Calculate the total manufacturing cost for each jolb c) Using the total figures, record the transactions in the general journal. d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and (1 mark) (4 marks) (9 marks) state the balance on the account before closing the account. Show the journal entries necessary to dispose of this variance (3 marks) e) What is the balance in the Cost of Goods Sold account after the adjustment? f) Calculate the gross profit earned by Pack Rite for the month g) Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the (2 marks) (2 marks) appropriate entries to these accounts & determine the ending account balances. Assume that the beginning balances were zero (4 marks) Pack Rite manufact and has a highly labour on direct labour hours. Any overhead variance is closed out to Cost of Goods Sold. ures back packs for schools. The business uses a perpetual inventory system r intensive production process, so it applies manufacturing overhead based ack Rite's pre-determined overhead application rate for 2017 was computed from the following data Total estimated factory overheads Total estimated direct labour hours $4,20o,ooo 35,000 During th i) Purchased materials on account, $500,000 ii) Incurred manufacturing wages of $1,065,00o iii) Issued direct materials and used direct labour in manufacturing e first month of 2017, the business recorded the following transactions. Direct Materials Direct Labour Direct Labour Hours Job 401 Job 402 Job 403 Job 404150,000 iOO,000 80,0009190,000 90,000 220,000 1,200 1,000 1,100 1,800 205,000 iv) Issued indirect materials to production, $80,0o0 v) Charged indirect manufacturing wages to production, $159,750 vi) Depreciation expense on factory equipment used on the different jobs, $300,0o0 vii) Other overhead costs incurred on jobs 101 to 04 amounted to $112,750 viii)Applied factory overhead tothe various jobs using the pre-determined factory overhead rate ix) Finished Jobs 1o1 103 and transferred to the finished goods inventory account x) Shipped Job 101 and 102 and billed customers at a margin of 25% on cost. Required a) Compute Pack Rite's predetermined manufacturing overhead rate. b) Calculate the total manufacturing cost for each jolb c) Using the total figures, record the transactions in the general journal. d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and (1 mark) (4 marks) (9 marks) state the balance on the account before closing the account. Show the journal entries necessary to dispose of this variance (3 marks) e) What is the balance in the Cost of Goods Sold account after the adjustment? f) Calculate the gross profit earned by Pack Rite for the month g) Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the (2 marks) (2 marks) appropriate entries to these accounts & determine the ending account balances. Assume that the beginning balances were zero (4 marks)