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PLZ HELP ASAP THANK U Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours.
PLZ HELP ASAP THANK U
Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,980,000 of factory overhead costs and use 66,000 machine hours. Erkens Company recorded the following events during the month of April: a. Purchased 180,000 pounds of materials on account; the cost was $5.00 per pound. b. Issued 120,000 pounds of materials to production, of which 15,000 pounds were used as indirect materials. c. Incurred direct labor costs of $240,000 and $40,000 of indirect labor costs. d. Recorded depreciation on equipment for the month, $75,700. e. Recorded expired insurance costs for the manufacturing property, $3,500. f. Paid $8,500 cash for utilities and other miscellaneous items for the manufacturing plant. g. Completed Job H11 costing $7,500 and Job G28 costing $77,000 during the month and transferred them to the Finished goods inventory account h. Shipped Job G28 to the customer during the month. The job was invoiced at 35% above cost. i. Used 7,700 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year: 2. Prepare journal entries to record the events that occurred during April. Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Purchased 180,000 pounds of materials on account; the cost was $5.00 per pound. Note: Enter debits before credits: Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Incurred direct labor costs of $240,000 and $40,000 of indirect labor costs. Note: Enter debits before credits: Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, select "No fournal entry required" in the first account field.) Journal entry worksheet \begin{tabular}{lll|lllllll} 1 & 2 & 3 & 5 & 6 & 7 & 8 & 9 & 10 \end{tabular} Recorded depreciation on equipment for the month, $75,700. Note. Lnter debits before credits. Prepare journal entries to record the events that occurred during April. (If no entry is required for a entry required" in the first account field.) Journal entry worksheet Step by Step Solution
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