Sunland Ltd. manufactures industrial kitchen equipments. Sunland uses a normal job-costing system to allocate manufacturing overhead cost, based on the machine hours. The selected account balances are as follows:

		January 1		December 31
Direct materials		$75,000		$50,000
Work-in-process		21,000		38,000
Finished goods		43,000		27,000
Direct manufacturing labour				126,000
Indirect manufacturing labour				53,000
Factory Insurance				7,000
Factory Utilities				27,000
Factory Maintenance				26,000
DepreciationMachine				55,320

The budgeted manufacturing overhead costs and machine hours were $122,720 and 5,200 hours. The actual machine hours worked was 6,400 hours.

Calculate the budgeted overhead rate per machine hour and the actual overhead rate per machine hour? (Round answers to 2 decimal places, e.g. 25.15.)

Budgeted Overhead Rate Per Machine Hour		$
Actual Overhead Rate Per Machine Hour		$

What was the manufacturing overhead amount applied to the work-in-process? Was the amount over- or under-applied?

Overhead Amount

$ Nor Overapplied / Neither Underapplied / Overapplied / Underapplied

The material requisition records showed that $85,900 of materials was used in the production. What is the amount of material purchased?

Materials Purchased

$

List of Accounts

Prepare all journal entries related to the production, including the year-end adjustment for over- or underapplied manufacturing overhead. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter 0 for the amounts.)

Prepare a schedule of cost of goods manufactured, using the amount of actual manufacturing overhead incurred.

What is the amount of cost of goods sold after the adjustment?

Cost of Goods Sold

$

Accumulated Depreciation - Machine Cash Cost of Goods Sold Cost of Services Direct Material Inventory Finished Goods Inventory Loss from Abnormal Spoilage Manufacturing Overhead Materials Control Miscellaneous Accounts No Entry Required Overhead Cost Control Raw Materials Inventory Service Overhead Wages Payable Work-in-Process Inventory Account Titles and Explanation Debit Credit (To record matrerial purchased) (Materials used in production) (Direct manufacturing labour in production) (To record indirect manufacturing labor) (Factory Insurance) (Factory Utilities) (Factory Maintenance) (Depreciation - Machine) (Manufacturing Overhead applied to WIP) (To close work-in-process inventory account) (To close finished goods inventory account) (To close manufacturing overhead control account) Sunland Ltd. Schedule of Cost of Goods Manufactured Accumulated Depreciation - Machine Cash Cost of Goods Sold Cost of Services Direct Material Inventory Finished Goods Inventory Loss from Abnormal Spoilage Manufacturing Overhead Materials Control Miscellaneous Accounts No Entry Required Overhead Cost Control Raw Materials Inventory Service Overhead Wages Payable Work-in-Process Inventory Account Titles and Explanation Debit Credit (To record matrerial purchased) (Materials used in production) (Direct manufacturing labour in production) (To record indirect manufacturing labor) (Factory Insurance) (Factory Utilities) (Factory Maintenance) (Depreciation - Machine) (Manufacturing Overhead applied to WIP) (To close work-in-process inventory account) (To close finished goods inventory account) (To close manufacturing overhead control account) Sunland Ltd. Schedule of Cost of Goods Manufactured