Paddy's Parts manufactures specialized parts for oil rigs and relies on job...
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Accounting
Paddy's Parts manufactures specialized parts for oil rigs and relies on job costing to cost their inventory. At the beginning of the year, management determined the following related to part #:
Budgeted
Total Overhead $
Cost Allocation Base Machine Hours
Machine Hours
Direct Material per part $
Beginning of Year Balances
Raw Material $
Work in Process $
Finished Goods $
Cost of Goods Sold $
At the end of the year, Paddy's produced parts, using $ of raw materials and $ of overhead. In the process, they used machine hours.
Required:
a Calculate the predetermined allocation rate for manufacturing overhead.
b Calculate the amount of overhead allocated. Close the factory overhead account by using the "writeoff" to COGS approach. Show all of your journal entries. NOTE: Only enter the amount of overhead allocated in the box below. Show your journal entry and any calculations related to it on your separatelysubmitted work paper
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