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2. Custom Furniture Company's job cost records showed the following information: Date May 18 May 21 Job No. Started Finished Sold 50 April 21 May 25 51 April 29 May 29 52 May 2 June 13 June 15 53 May 6 May 28 June 2 Compute the following balances for each job. 1. Work-in-Process Inventory at May 31 b. Finished Goods Inventory at May 31 c. Cost of Goods Sold for May Total Cost on May 31 $ 3,400 13.700 6,000 4,400 3. Selected cost data for Custom Furniture Company are as follows: Estimated manufacturing overhead cost for the year $ 200,000 Estimated direct labor cost for the year 156,250 Actual manufacturing overhead cost for the year 120.056 Actual direct labor cost for the year 102,000 Requirements 1. Compute the predetermined overhead allocation rate per direct labor cost. b. Use a T-account to determine the amount of underapplied or overapplied manufacturing overhead c. Use a Taccount to adjust for the underapplied or overapplied manufacturing overhead 4. Custom Furniture Company uses a predetermined overhead allocation rate to allocate overhead to each job. The manager decided to use machine hours as the predetermined overhead allocation base. At the beginning of 2020, the company expected to incur the following: Manufacturing overhead $ 840,000 costs Direct labor costs 1,480,000 Machine hours 70,000 hours At the end of 2020, the company had actually incurred: Direct labor costs $ 1,230,000 Depreciation on manufacturing plant and 620,000 equipment Property taxes on plant 35,500 Sales salaries 26,000 Delivery drivers' wages 22,500 Plant janitor's wages 17,000 Machine hours 60,000 hours Requirements a. Compute Custom Furniture Company's predetermined overhead allocation rate. b. Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. Is manufacturing overhead underapplied or overapplied? By how much? c. Prepare the adjusted T-accounts needed for the underapplied or overapplied manufacturing overhead. d. Assume the underapplied or overapplied manufacturing overhead is significant. At the end of the year, raw materials are $200,000, work-in-process inventories are $400,000, finished goods are $160,000, and cost of goods sold is $240,000. Prepare the adjusted T-accounts needed for the underapplied or overapplied manufacturing overhead. 5. Mill Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs At the beginning of 2020, managing partner Jason Mill prepared the following budget for the year: Direct labor hours 13.750 hours (professionals) Direct labor costs $ 2,200,000 (professionals) Office rent 330,000 Support staff salaries 1,200,000 Utilities 450,000 Louis Manufacturing, Inc. is inviting several consultants to bid for work. Jason Mill wants to submit a bid. He estimates that this job will require about 180 direct labor hours. Requirements 1. Compute Chance Realtors (w) hourly direct labor cost rate and (b) predetermined overhead allocation rate. b. Compute the predicted cost of the Louis Manufacturing job. c. If Jason wants to eam a profit that equals 25% of the job's cost, how much should he bid for the Louis Manufacturing job

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