QUESTION 3

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

a. Materials requisitioned for production cost $250,000 [ direct materials and indirect materials are proportioned by 6:2].

b. Repairs costs incurred are $75,000

c. Raw Materials purchased on cash $150,000

d.

Salaries $

Direct Labour 125,000

Supervisors salaries [factory 50,000

Marketing cost 45,000

Admin Salaries 80,000

e. Selling commission cost incurred is $60,000

f. Insurance for factory $70,000. Admin insurance is 40% of the factory insurance

g. Rent expense for the factory is $50,000 and the rent for the shop is $45,000

h. Supplies expense for the factory incurred during the month is $15,000 [on account]

i. Use the information below to find the Predetermined Rate using machine hours as the cost driver

$

Estimated Overhead 76,000

Budgeted machine hours 21,000 hours

Actual machine hours 30,000 hours

Actual overhead 142,000

j. Journalize the applied cost used in section (i)

k. Sold goods costing $400,000 for $650,000

l. Depreciation for equipment of factory for the period was $16700

m. Depreciation for the building [store] was $8,500

n. $45,000 Cash was paid for the suppliers

REQUIRED

1. Prepare Journal entries for the quarter

2. Is production cost underallpied or overapplied?