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P17-28A Accounting manufacturing overhead White Woods manufactures jewelry boxes. The primary material (woods, brass, and glass) and direct labor are traced directly to the products. Manufacturing overhead costs are allocated based on machine hours. Data for 2012 follow: Machine hours Maintenance labor (repairs to equipment) Plant supervisor's salary Screws, nails, and glie Plant utilities Freight out Depreciation on plant and equipment Advertisisng expense Estimated (Budget) 25,000 hours $12,000 47,000 24,000 41,000 37,000 87,000 43,000 Actual 32,100 hours $28,500 48,000 45,000 96,850 46,500 83,000 54,000 1. Compute the predetermined manufacturing overhead rate. 2. Post actual and allocated manufacturing overhead to the Manufacturing overhead T-account. 3. Close the under or over allocated overhead to Cost of goods sold. 4. The predetermined manufacturing overhead rate usually turns to be inaccurate. Why don't accountants just use the actual manufacturing overhead rate? 5. Journal and explain each step E17A-10 Computing equivalent units, computing cost per equivalent unit; assigning costs; journalizing; second department, weighted-average method. Cool Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work in process inventory include transferred in costs of $1,700, direct labor of $700, and manufacturing overhead of $330. February data for the Bottling Department follow: Cool Spring Company Work in process inventory-Bottling Month Ended February 28,2013 Physica l Units Beginning inventory, January 31 (40% complete) 12,000 Physica l Units Dollars $2,730 Transferred out Dollar s 152,000 $ Production started; Transferred in Direct materials Conversion costs: Direct labor Manufacturing overhead Total to account for Ending inventory, February 28 (70% complete) 163,000 134,800 30,400 33,100 16,300 175,000 $217,330 23,000 $ 1. Compute the Bottling Department equivalent units for the month of February. Use the weighted-average method. 2. Compute the cost per equivalent unit for February. 3. Assign the costs to units completed and transferred out and to ending Work in process in inventory. 4. Prepare the journal entry to record the cost of units completed and transferred out. 5. Post all transactions to the Work in process inventory-Bottling Department T-account. What is the ending balance? 6. Journal and explain each step