QUESTION 1

The G0-Magic company uses job-order costing system. The following data relate to the first quarter of the companys fiscal year

a. Materials purchased on credit $190,000

b. Materials issued from store room to production,$1759+6+6+ +

,000 [75% direct materials and 20% indirect materials]. c. Utility costs incurred in the factory $19,000

d. Cost of employee salaries

a. Direct Labour $45,000

b. Indirect cost and support workers in the factory $23,000

c. Marketing salaries $65,000 e. Advertising cost incurred = $84,000

f. Prepaid insurance expired during the quarter , $75,000.[ the ratio of insurance production to admin insurance = 2: 1]

g. Rental cost = $36,000 [ selling cost consists of 25% of the total rental cost]

h. Company applies manufacturing overhead based on machine hours . Budgeted overhead cost =$200,000 and

Estimated machine hours = 42000 hours.

Actual machine hours worked = 45,000 hours.

Calculate the PR and journalize the applied cost

i. Goods costing to produce =$1,400,000 were completed during the quarter

Sales on credit = $3,000,000. REQUIRED

1. Prepare Journal entries for the quarter

2. Is overhead cost under-applied or over-applied? What adjustment should be made to correct the cost of goods account

plz ingnore last statement