S $ S 20,000 35,000 55,000 a $ S $ During May, Sharpton Corporation recorded the following: Raw materials, beginning balance Work in process, beginning balance Finished Goods, beginning balance Transactions: Raw materials purchases, on account b Raw materials used in production (direct: 60,000; indirect: 13,000) Direct labor cost used d Indirect labor cost used Other manufacturing overhead costs incurred (.e., utility, tax, etc.) Manufacturing overhead applied Cost of units completed and transferred from Work in Process to Finished Goods Any overapplied or underapplied manufacturing overhead is closed h to Cost of Goods Sold Finished goods are sold (Revenue is $650,000 in Cash) 1 Prepare the journal entries to record the following transactions 55,000 73.000 60,000 25,000 e $ 75,000 f $ 109,000 S 253,000 i S 300,000 (6) 0 2 Prepare T-Accounts for Work in Process and Manufacturing overhead, showing the ending balances WIP Mfg OH 3 Determine the amount of overapplied or underapplied overhead (Choose one) 4 Based on above, prepare the journal entries to adjust manufacturing overhead at the end of the period 5 Explain why there is under or over application of manufacturing overhead. You are making cupcakes to sell on campus for a charity event. You planned to spend three nights to Percent Complete Units Materials Conversion Work in process, Ending of Day 1 20 80 % 70 % Cupcakes started during Day 2 80 Work in process, Ending of Day 2 30 70 % 40 % Cost in the beginning inventory of cupcakes: Materials 2.29 Conversion $ 11.67 Cost added to production in September Materials 10 Conversion S 50 Compute the equivalent units of cupcakes being made for both materials and conversion 1 costs for Day 2 2 Calculate the materials cost and conversion cost per equilvalent unit of cupcakes. 3 What is the total cost of Work in process, cupckaes at the end of Day 2? 4 What is the total cost of the cupcakes that are COMPLETED on Day 2