50.1K

Verified Solution

Link Copied!

1. a. We are doing our budgeting for 2021. In 2021 we will apply overhead based on machine hours. Our 2021 estimated manufacturing overhead is $750,000. We expect to work 50,000 direct labor hours at $25/hour, and use 20,000 machine hours. Our predetermined overhead rate is

$________________________ per _______________

1.b. (Continuation of 1.a.) Job 572 uses $750 of direct materials, 20 direct labor hours and 5 machine hours. The cost of the job is

$ _____________________

1. c. (continuation of 1.a, b) The work-in-process account for the month has the following items:

Direct labor 4,000 hours @ $25/hour

Direct materials $150,000

Work in process, beginning inventory $60,000

Work in process, ending inventory $25,000

2,100 machine hours were used.

What amount was transferred from Work in Process Inventory to Finished Goods Inventory? Show it in the journal entry to record the transfer.

1. d. (continuation of 1. a, b, c) We close out the Manufacturing Overhead account each month. Our Manufacturing Overhead account shows accumulated costs of $74,000. Give the journal entry to close out the Manufacturing Overhead account.

Hi, there are no options provided to d. If this question is an issue, please leave this question and complete the rest. Thank you.

Answer & Explanation Solved by verified expert

See Answer