Problem 2:

Below is information from Job Card 506 for the Bearing Manufacturing Company. Date started: June 15, 2015 Date Completed: July 24, 2015

Date	Direct Materials	Direct Labor	Applied Factory Overhead	Job Total
6/15/2015	$ 5,000
6/25/2015		$1,200	$600
6/27/2015	$2,300
7/6/2015		$ 1,540	$770
7/15/2015	$2,600
7/24/2015		$760	$380

Job 506 was sold on credit on July 24, 2015, for 180% of its cost. Factory OH was applied on the basis of DL.

Required:

1. Prepare the journal entries to record the costs incurred for Job 506 in 2015 for direct materials, direct labor, and factory overhead.
2. Prepare the journal entry to record the completion of Job 506.
3. What is the predetermined factory overhead rate for Bearing Manufacturing?
4. Prepare the journal entries to record the sale of Job 506.