Question 2 Kiddos involved in producing customised toys. It uses a job order costing system and the factory overhead is allocated based on machines hours. Total factory overhead is estimated to be RM750,000 for the current year. Kiddos estimate that its total machine hours for the year are 50,000 hours. The following information is for the month of June 2012: Inventories on June 1,2012: Work in Process - RM20,000: Job TAP (RM12,000) and Job SHOOT (RM8,000) During June, the factory worked on its existing product: Job TAP and Job SHOOT as well as new product SLAP. Materials (including supplies) purchased during the month amounted to RM20,000. Materials issued to TAP amounted to RM3,000, SHOOT was issued materials of RM3,500 and SLAP was started during the month and received materials amounting RM5,500. During the month, the direct labor rate was RM15 per hour. Labour and machine hours recorded for the month of June 2012: During June, indirect material used were RM1,100, indirect labour cost incurred were RM3,000, insurance amounted to RM2,500 (all relates to the factory operations); depreciation on factory machinery amounted to RM6,000 and rental amounted to RM30,000 ( 20% of rental is related to the administrative office). Job TAP and SHOOT were completed during June and transferred to Finished Goods. Job TAP was sold for RM40,000 and Job SHOOT was sold for RM50,000 in June. Required: a. Show the workings for pre-determined overhead rate b. Prepare the necessary journal entries to record the transaction. c. Prepare a Job Cost Sheet for Job TAP \& SHOOT d. Determine whether the overhead was under or over applied. What is the record? e. Work in Process Inventory A/C