QUESTION 2 (25 MARKS) A. D'Salai Company had only one job in process on 19 May. The job had been charged with RM1,400 of direct materials, RM6,192 of direct labor, and RM5,712 of manufacturing overhead cost. The company assigns overhead costs to jobs using the predetermined overhead of RM11.90 per direct labor hour. During May, the following activities were recorded: RM Raw materials (all direct materials): Beginning balance 8,500 Purchased during the month 48,000 Used in production 51,800 Labor: Direct labor hours worked during the month 1,900 24,510 Direct labor cost incurred 21,000 Actual manufacturing overhead costs incurred Inventories: 4,700 Raw materials as at 30 May 19,536 Work in process as at 30 May Required: a) Prepare the schedule of costs of goods manufactured of D'Salai Company for May. (9 marks) b) Compute the over/under applied manufacturing overhead and state the entry to dispose the applied overhandis h ment (7 marks) B. The following partially completed T-accounts summarize last year's transactions for Marine Quest Company. Raw Materials Begin balance 4,000 (2) 20,000 (1) 18,000 Sales Salaries Expenses 10,000 50,000 Begin balance Work in Progress 8,000 (7) 12,000 15,000 28,000 (2) (4) (6) Page 9 of 12 ACCTI 201/March 2017 28,000 Manufacturing Overhead 8,000 12,000 5,000 4,000 Accounts Payable 18,000 4,000 Begin Balance Finished Goods 17,000 50,000 12,000 Ending Balance Wages & Salaries Payable Begin balance 28,000 30,000 Accumulated Depreciation (Factory) Begin balance (3) 90.000 12.000 The company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold at the end of the year. Required: Based the above information, prepare the journal entries for: a) Indirect labor cost (4 marks) b) Manufacturing overhead applied (2 marks) c) Cost of direct materials used (3 marks) Page 10 of 12 ACCTI201 March 2017 hom ni 12 - Q +