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CoursHeroTranscribedText: O'Leary Corporation manufactures special purpose portable structures (huts, mobile ofces, and so on) for use at construction sites. It only builds to order (each unit is built to customer specications). O'Leary uses a normaljob costing system. Direct labor at O'Leary is paid $33 per hour, but the employees are not paid if they are not working on jobs. Manufacturing overhead is assigned to jobs by a predetermined rate on the basis of direct labor-hours. The company incurred manufacturing overhead costs during two recent years (adjusted for price-level changes using current prices and wage rates) as follows. Year 1 Year 2 Direct laborhours worked 70,200 57,200 Manufacturing overhead costs incurred Indirect labor $2,888,000 $2,288,000 Employee benefits 1,053,000 858,000 Supplies 702,000 572,000 Powe r 659, 000 554, 000 Heat and light 144,400 144,400 Supervision 785,530 665,850 Dep reciat ion 2, 078, 500 2, 078, 500 Property taxes and insurance 815,570 847,250 Total manufacturing overhead costs $9,125.000 $8,008,000 At the beginning of year 3, O'Leary has two jobs, which have not yet been delivered to customers. Job MC-27O was completed on December 27, year 2. It is scheduled to ship on January 7, year 3. Job MC-275 is still in progress. For the purpose of computing the predetermined overhead rate, O'Leary uses the previous year's actual overhead rate. Data on direct material costs and direct labor- hours for these jobs in year 2 follow. Job MC-270 Job MC275 Direct material costs $273,200 $498,200 Direct laborhours 2,660 hours 3,360 hours During year 3, O'leary incurred the following direct material costs and direct labor-hours for all jobs worked in year 3, including the completion of Job MC-275. Direct material costs $11, 843, 200 Direct labor-hours 77, 200 Actual manufacturing overhead $ 9, 888, 000 At the end of year 3, there were four jobs that had not yet shipped. Data on these jobs follow. MC-389 MC-390 MC-397 MC-399 Direct materials $46, 400 $70, 200 $106, 700 $32, 100 Direct labor-hours 1,772 hours 2, 860 hours 6,260 hours 1,460 hours Job status Finished Finished In progress In progress Required:Required A Required B Required C Required D Required E What was the amount in the beginning Finished Goods and beginning Work-in-Process accounts for year 3? Work-inprocess inventory Finished goods inventory O'leary incurred direct materials costs of $60,200 and used an additional 620 hours in year 3 to complete job MC-275. What was the final (total) cost charged to job MC-275? Final (total) cost charged Journal entry worksheet Record the entry to prorate any over- or underapplied overhead. Note: Enter debits before credits. A customer has asked O'Leary to bid on a job to be completed in year 4. O'Leary estimates that the job will require about $94,100 in direct materials and 5,160 direct labor-hours. Because of the economy, O'Leary expects demand for its services to be low in year 4, and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would be virtually no sales or administrative costs associated with this job. What is the minimum amount O'Leary can bid on the job and still not incur a loss? Show IessA _:|

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