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 $ 26,000, direct labor $ 15,600, and manufacturing overhead $ 20,800. As of January 1, Job 49 had been completed at a cost of $ 117,000 and was part of finished goods inventory. There was a $ 19,500 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 $ 158,600 and $ 205,400, respectively. The following additional events occurred during the month.

1.

Purchased additional raw materials of $ 117,000 on account.

2.

Incurred factory labor costs of $ 91,000.

3.

Incurred manufacturing overhead costs as follows: depreciation expense on equipment $ 15,600; and various other manufacturing overhead costs on account $ 20,800.

4.

Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$ 13,000		$ 6,500
51		50,700		32,500
52		39,000		26,000

5.

Assigned indirect materials of $ 22,100 and indirect labor of $ 26,000.

(a)

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Calculate the predetermined overhead rate for 2022, assuming Wildhorse Company estimates total manufacturing overhead costs of $ 1,092,000, direct labor costs of $ 910,000, and direct labor hours of 26,000 for the year.

Predetermined overhead rate

120

%

(d1)

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).