Pittsburg Pump, Inc. manufactures bilge pumps for small boats. It uses a job-order costing system. Normal costing is used, and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $1,420,000, and management expects that 71,000 machine hours will be used. Required a. Calculate the companys predetermined overhead rate for the year.

b. Prepare journal entries to record the following events, which occurred during April.

1. Purchased pump impellers from Marion Corporation for $7,850 on account.

2. Processed requisition from the Gauge Department supervisor for 300 pounds of clear plastic. The material cost $.60 per pound when it was purchased.

3. Processed the Testing Departments requisition for 300 feet of electrical wire, which is considered an indirect material. The wire cost $.10 per foot when it was purchased.

4. Paid $800 in cash on electric utility bill for the factory.

5. Incurred direct-labor costs of $75,000 in April.

6. Recorded Aprils insurance cost of $1,800 for insurance on the cars driven by sales personnel. The policy had been prepaid in March.

7. Purchased metal tubing costing $3,000 on account.

8. Made cash payment of $1,700 on outstanding accounts payable.

9. Incurred indirect-labor costs of $21,000 during April.

10. Recorded depreciation of $7,000 on factory equipment for April.

11. Finished job G22 during April at a total cost of $1,100. 12. Used 6,900 machine hours during April.

13. Made sales on account for April of $179,000. The April cost of goods sold was $141,000.

Kalamazoo Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans.

Additional information follows:

a. Purchased 239,000 kilograms at $ .81 per kilogram.

b. Produced 50,000 units.

c. Used 210,000 kilograms at a total cost of $170,100 for units produced.

d. Used 13,000 hours of labor at a total cost of $213,200 for units produced

e. Each case requires 4 kilograms of material and .25 hours of labor.

f. The standard price is $ .79 per kilogram for materials and the standard rate of labor is $16.

Enter the information above as it affects the T-accounts on the back.

Note on the accounts where the transaction does not balance.