User The below list of accounts:
Pharoah Ltd. manufactures industrial kitchen equipments. Pharoah 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 $79,000 22,000 50,000 Direct materials Work-in-process Finished goods Direct manufacturing labour Indirect manufacturing labour Factory Insurance Factory Utilities Factory Maintenance Depreciation-Machine December 31 $54,000 33,000 25,000 132,000 53,000 8,000 31,000 25,000 50,280 The budgeted manufacturing overhead costs and machine hours were $121,000 and 5,500 hours. The actual machine hours worked was 6,800 hours. Your answer is partially correct. Try again. 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 22 X Actual Overhead Rate Per Machine Hour 17.79 Your answer is correct. What was the manufacturing overhead amount applied to the work-in-process? Was the amount over- or under-applied? Overhead Amount 17680 Underapplied $ Your answer is correct. The material requisition records showed that $92,400 of materials was used in the production. What is the amount of material purchased? 67400 Materials Purchased $ Your answer is partially correct. Try again. 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 o for the amounts.) Debit Credit Account Titles and Explanation x Direct Material Inventory 67400 Cash 67400 (To record matrerial purchased) Work-in-Process Inventory 92400 Direct Material Inventoi 92400 (Materials used in production) Work-in-Process Inventory 132000 Wages Payable 132000 (Direct manufacturing labour in production) TManufacturing Overhead 53000 53000 Wages Payable (To record indirect manufacturing labor) TManufacturing Overhead 8000 8000 Cash (Factory Insurance) Manufacturing Overhead 31000 Cash 31000 (Factory Utilities) Manufacturing Overhead 25000 Cash 25000 (Factory Maintenance) Manufacturing Overhead 50280 50280 Accumulated Depreciati (Depreciation - Machine) Work-in-Process Inventory 149600 149600 Manufacturing Overhea (Manufacturing Overhead applied to WIP) Finished Goods Inventory 288280 Work-in-Process Invent 288280 (To close work-in-process inventory account) Cost of Goods Sold 313280 Finished Goods Invento 313280 (To close finished goods inventory account) Cost of Goods Sold 17680 17680 Manufacturing Overhea (To close manufacturing overhead control account) Prepare a schedule of cost of goods manufactured, using the amount of actual manufacturing overhead incurred. Pharoah Ltd. Schedule of Cost of Goods Manufactured Direct Materials, Beginning 79000 Add 4 Direct Materials Purchases 67400 Total Direct Materials Available for Use 146400 Less Direct Materials, Ending 54000 Direct Materials used in Production $1 92400 Direct Manufacturing Labour 132000 Manufacturing Overhead Indirect Manufacturing Labour 53000 Factory Insurance 8000 Factory Utilities 31000 Factory Maintenance 25000 Depreciation - Machine 50280 Total Manufacturing Overhead 167280 Total Manufacturing Costs for the Current Period 299280 Work-in-process, Beginning 22000 X Total Manufacturing Costs for the Current Period 321280 Less Work-in-process, Ending . 33000 Total Manufacturing Costs to Account for 288280 x Your answer is incorrect. Try again. What is the amount of cost of goods sold after the adjustment? x 330960 Cost of Goods Sold List Of Accounts Problem 5.53 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
