Problem 4-32 Waterway Wings, Inc. manufactures airplanes for use in stunt shows. Waterway's factory is highly automated, using the latest in robotic technology. To keep costs low, the company employs as few factory workers as possible. Since each plane has different features (such as its shape, weight, and color), Waterway uses a job order costing system to accumulate product costs. At the end of 2016, Waterway's accountants developed the following expectations for 2017 based on the marketing department's sales forecast: Budgeted ovarhead cot machine hours Estimated dinect labor hours Estimated direct Waterway's inventory count, completed on December 31, 2016, revealed the following ending inventory balances: aw Materials Inventory $249,000 Work in Process Dvenbory $625,00 Finished Goods Inventory $3,350,000 The company's 2017 payroll data revealed the following actual payroll costs for the year: 78,000 Factory manager 931.50 Assistant fectory manager Seourity guard, factory Corporabe secretary lanitac factory The following information was taken from Waterway's Schedule of Plant Assets. All assets are depreciated using the straight-line method. $650,000$20,000 2,000,000 125,00 30 Years Factory equipment Other miscellaneous costs for 2017 all paid in cash included utlities $5500 Office supplies (fuily consumed) 4800 Additional information about Waterway's operations in 2017 includes the Raw materials purchases for the year amounted to $1,948,000. All materials were purchased on account. The company used $1,860,000 in raw materials during the year. Of that amount, 85% was direct materials and 15% was indirect materials. Waterway applied overhead to Work in Process Inventory based on direct materials cost. Airplanes costing $3,450,000 to manufacture were completed and transferred out of Work in Process Inventory. waterway uses a markup of 80% to price its airplanes. Sales for the year were $6,570,000. All sales are made on account. (Note: This transaction requires two journal entries.) Your answer is correct. What was Waterway's predetermined overhead rate in 2017? (Round answer to 2 decimal places, eg. 52.75%.) ofdrect Your answer is partially correct. Try again. Prepare the journal entries to record Waterway's costs for 2017. (Use Salaries Payable and Wages Payable accounts for payroll costs.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Post entries in order presented in the problem. Round answers to O decimal places, e.g. 5,275 Your answer is partially correct. Try again. Prepare the appropriate T-accounts for Raw Materials Inventory, Work-in- Process Inventory, Finished Goods Inventory, Manufacturing Overhead Control, Cost of Goods Sold, and Sales, and record Waterway's transactions for 2017. (Post entries in order presented in the problem. Round answers to O decimal places, e.g. 5,275.) Raw Materials Work in Process Inventory Finished Goods Inventory of Goods Sold Sales Revenue Your answer is incorrect. Try again. Was manufacturing under- or overapplied in 2017? By how much? (Round answer to O decimal places, e.g.5,275.) Was manufacturing under- or overapplied in 2017? By how much? (Round answer to O decimal places, e.g. S,275.) Your answer is partially correct. Try again. Make the adjusting entry necessary to close the under- or overapplied overhead to cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) of Geeds Sel Your answer is incorrect. Try again. If Waterway chooses instead to prorate under- or overapplied overhead, what are the adjusted Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold account balances for 2017? (Round % of total to 2 decimal places, e.g. 55.75 and final answers to o decimal places, e.g. 5,27S.) Finished Goods Your answer is incorrect. Try again. ob 3827 was started and completed in 2017. The job required 1,200 machine hours, 1,000 direct labor hours, and $75,000 in direct materials to complete, what was the total cost of this job? Using Waterway's 80% markup, what sales price would be charged for this airplane? (Round answers to 0 decimal places, e.g. 5,275.) otal Cost Sales Price Your answer is partially correct. Try again. Make the adjusting entry necessary to close the under- or overapplied overhead to cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Acceust Titles and Esplanation Debit Creda Cost of Goods Sold 2386 LIST OF ACCOUNTS Your answer is incorrect. Try again. If Waterway chooses instead to prorate under- or overapplied overhead what are the adjusted Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold account balances for 2017? (Round % of total to 2 decimal places, e.g. 55.75 and final answers to o decimal places, e.g.5,275.) Work In Process Finished Goods Cost of Goods Sold Your answer is incorrect. Try again. Job 3827 was started and completed in 2017. The job required 1,200 machine hours, 1,000 direct labor hours, and $75,000 in direct materials to complete. what was the total cost of this job? Using Waterway's 80% markup, what sales price would be charged for this airplane? (Round answers to 0 decimal places, e.g. 5,275) Total Cost Sales Price