The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500 for departments 100 and 200, respectively. For Job A, the actual costs incurred in the two departments were as follows:

Department 100 Department 200

1. Materials purchased on account $35,000 $18,500
2. Direct materials used in production 32,500 13,500
3. Direct labor used in production 52,500 53,500
4. Indirect labor used in production 5,000 2,000
5. Indirect materials used in production 3,500 2,750
6. Lease on equip (overhead cost)(cash paid) 3,250 1,750
7. Utilities (overhead cost)(cash paid) 1,000 1,250
8. Mfg Overhead Allocated 11,500 7,813
9. Under or over allocated overhead cost ? ?

Job A incurred 800 machine-hours in Department 100 and 1,000 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

Required:

a. On the following page, prepare the nine journal entries above to summarize the March transactions for Department 100 related to the above costs, including the entry to account for the under or over allocated overhead in department 100 (record to COGS).

b. What is the total cost of Job A?

Problem 121 Points The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500 for departments 100 and 200, respectively. For Job A, the actual costs incurred in the two departments were as follows: Department 100 Department 200 1. Materials purchased on account $35,000 $18,500 Direct materials used in production 32,500 13,500 3. Direct labor used in production 52,500 53,500 4. Indirect labor used in production 2,000 5. Indirect materials used in production 3,500 2,750 6. Lease on equip (overhead cost)(cash paid) 3,250 1,750 7. Utilities (overhead cost)(cash paid) 1,000 1,250 8. Mfg Overhead Allocated 11,500 7,813 9. Under or over allocated overhead cost ? 2 5,000 ? Job A incurred 800 machine-hours in Department 100 and 1,000 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production Required: a. On the following page, prepare the nine journal entries above to summarize the March transactions for Department 100 related to the above costs, including the entry to account for the under or over allocated overhead in department 100 (record to COGS). b. What is the total cost of Job A