Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,400, direct labor $14,640, and manufacturing overhead $19,520. As of January 1, Job 49 had been completed at a cost of $109,800 and was part of finished goods inventory. There was a $18,300 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $148,840 and $192,760, respectively. The following additional events occurred during the month.
| 1. | | Purchased additional raw materials of $109,800 on account. |
| 2. | | Incurred factory labor costs of $85,400. |
| 3. | | Incurred manufacturing overhead costs as follows: depreciation expense on equipment $14,640; and various other manufacturing overhead costs on account $19,520. |
| 4. | | Assigned direct materials and direct labor to jobs as follows. |
| Job No. | | Direct Materials | | Direct Labor | | 50 | | $12,200 | | $6,100 | | 51 | | 47,580 | | 30,500 | | 52 | | 36,600 | | 24,400 | |
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| 5. | | Assigned indirect materials of $20,740 and indirect labor of $24,400. |
Calculate the predetermined overhead rate for 2022, assuming Wildhorse Company estimates total manufacturing overhead costs of $1,024,800, direct labor costs of $854,000, and direct labor hours of 24,400 for the year.
Wildhorse Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,400, direct labor $14,640, and manufacturing overhead $19,520. As of January 1, Job 49 had been completed at a cost of $109,800 and was part of finished goods inventory. There was a $18,300 balance in the Raw Materials Inventory account on January 1. During the month of January, Wildhorse Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $148,840 and $192,760, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Purchased additional raw materials of $109,800 on account. Incurred factory labor costs of $85,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $14,640; and various other manufacturing overhead costs on account $19,520. Assigned direct materials and direct labor to jobs as follows. Job No. 50 51 52 Direct Materials $12,200 47,580 36,600 Direct Labor $6,100 30,500 24,400 5. Assigned indirect materials of $20,740 and indirect labor of $24,400. Calculate the predetermined overhead rate for 2022, assuming Wildhorse Company estimates total manufacturing overhead costs of $1,024,800, direct labor costs of $854,000, and direct labor hours of 24,400 for the year. Predetermined overhead rate eTextbook and Media List of Accounts 120 % Prepare the journal entries to record (1) the purchase of raw materials, (2) the factory labor costs incurred, and (3) the manufacturing overhead costs incurred during the month of January. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) | Debit 200 Credit T Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) Debit Credit UM Job No. 50 Date Beg. Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost $ $ Direct Materials $ $ Direct Labor Manufacturing Overhead $ $ $ $ Job No. 51 Date Jan. Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost $ $ LA Direct Materials $ $ Direct Labor Manufacturing Overhead $ $ tA $ $ Job No. 52 Date Jan. $ Direct Materials eTextbook and Media List of Accounts $ Direct Labor Manufacturing Overhead $ Prepare the journal entry to record the completion of any job(s) during the month. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entries to record the sale of any job(s) during the month. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (To record sale of jobs) (To record cost of jobs) Debit Credit What is the balance in the Finished Goods Inventory account at the end of the month? (Hint: Use a T-account for Finished Goods Inventory.) What does this balance consist of? Finished Goods Inventory eTextbook and Media List of Accounts What is the amount of over- or underapplied overhead? Manufacturing Overhead eTextbook and Media $ List of Accounts $
