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[The following information applies to the questions displayed below.) Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the

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[The following information applies to the questions displayed below.) Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the basis of machine hours. On January 1 of the current year, there were no balances in work-in-process or finished-goods inventories. The following estimates were included in the current year's budget. $ 188,000 Total budgeted manufacturing overhead Total budgeted machine hours 47,000 During January, the firm began the following production jobs: A79: 1,000 machine hours N08:2,500 machine hours P82: 500 machine hours During January. Job numbers A79 and NO8 were completed, and job number A79 was sold. The actual manufacturing overhead incurred during January was $26,000. Required: 1. Compute the company's predetermined overhead rate for the current year. Prodetermined overhead rato [The following information applies to the questions displayed below.) Midnight Sun Apparel Company uses normal costing, and manufacturing overhead is applied to work-in-process on the basis of machine hours. On January 1 of the current year, there were no balances in work-in-process or finished-goods inventories. The following estimates were included in the current year's budget. Total budgeted manufacturing overhead Total budgeted machine hours $ 188,000 47,000 During January, the firm began the following production jobs: A79: 1,000 machine hours N08: 2,500 machine hours P82: 500 machine hours During January, job numbers A79 and NO8 were completed, and job number A79 was sold. The actual manufacturing overhead incurred during January was $26,000. 2. How much manufacturing overhead was applied to production during January? 4. Prepare a journal entry to close the balance calculated in requirement (3) into Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry to close out balance of under or over applied overhead to cost of goods sold Note: Enter debits before credits Transaction Goneral Journal Debit Credit Record entry Clear View general Journal 5. Prepare a journal entry to prorate the balance calculated in requirement (3) among the Work-in-Process Inventory, Finished-Goods Inventory, and Cost of Goods Sold accounts. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record entry to prorate overhead to manufacturing accounts Notes Enter debits before credits Transaction General Journal Debit Credit View general Journal

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