Problem 5.53 Buffalo Ltd, manufactures industrial kitchen equipments. Buffalo uses a normal job-costing system to allocate manufacturing overhead cost, based on the machine hours. The selected account balances are as follows: January 1 $70,000 26,000 49,000 Direct materials Work-in-process Finished goods Direct manufacturing labour Indirect manufacturing labour Factory Insurance Factory Utilities Factory Maintenance Depreciation-Machine December 31 $53,000 35,000 24,000 115,000 52,000 9,000 31,000 22,000 40,350 The budgeted manufacturing overhead costs and machine hours were $111,180 and 5,100 hours. The actual machine hours worked was 6,300 hours. Calculate the budgeted overhead rate per machine hour and the actual overhead rate per machine hour? (Round answers to 2 decimal places, e.g. 25.15.) Budgeted Overhead Rate Per Machine Hour $ Actual Overhead Rate Per Machine Hour SHOW LIST OF ACCOUNTS What was the manufacturing overhead amount applied to the work-in-process? Was the amount over- or under-applied? Overhead Amount $ SHOW LIST OF ACCOUNTS The material requisition records showed that $94,500 of materials was used in the production. What is the amount of material purchased? Materials Purchased $ Prepare all journal entries related to the production, including the year-end adjustment for over- or underapplied manufacturing overhead. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit (To record matrerial purchased) (Materials used in production) (Direct manufacturing labour in production) (To record indirect manufacturing labor) (Factory Insurance) (Factory Utilities) (Factory Maintenance) (Depreciation - Machine) (Factory Utilities) (Factory Maintenance) (Depreciation - Machine) (Manufacturing Overhead applied to WIP) (To close work-in-process inventory account) (To close finished goods inventory account) (To close manufacturing overhead control account) Prepare a schedule of cost of goods manufactured, using the amount of actual manufacturing overhead incurred. Buffalo Ltd. Schedule of Cost of Goods Manufactured $ What is the amount of cost of goods sold after the adjustment? Cost of Goods Sold SHOW LIST OF ACCOUNTS