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t e Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,261,500, and management budgeted 87,000 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August 2 a. Purchased 5,000 square feet of oak on account at $26 per square foot b. Purchased 50 gallons of glue on account at $36 per gallon (indirect materia). c Requisitioned 3,500 square feet of oak and 31 gallons of glue for production. d. Incurred and paid payroll costs of $187,900. Of this amount, $46,000 were indirect labor costs; direct labor personnel earned $22 e. Paid factory utility bill, $15,230 in cash. f. August's insurance cost for the manufacturing property and equipment was $3,500. The premium had been paid in March. g. Incurred $8,500 depreciation on manufacturing equipment for August h. Recorded $2,400 depreciation on an administrative asset I. Paid advertising expenses in cash, $5,500 J Incurred and paid other factory overhead costs, $13,500 k. Incurred and paid miscellaneous selling and administrative expenses, $13,250 L. Applied factory overhead to production on the basis of direct labor hours m. Produced completed goods costing $146,000 during the month n Sales on account in August were $132,000. The Cost of Goods Sold was $112,000. Required 1. Compute the firm's predetermined factory overhead rate for the year 2. Prepare journal entries to record the August events 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31 4. Prepare a schedule of Cost of Goods Manufactured and Cost of Goods Sold 5. Prepare the income statement for August Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 COGM Req 4 COGSReq 5 Compute the firm's predetermined factory overhead rate for the year. (Round your answer to 2 decimal places.) per direct labor-hour Req 1 Req 2 > Journal entry worksheet Purchased 5,000 square feet of oak on account at $26 per square foot. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Prev ournal entry worksheet K12 3 4 5 6 7 8 15 Purchased 50 gallons of glue on account at $36 per gallon (indirect material). Note: Enter debits before credits Transaction General Journal Debit Credit b. Clear entry View general journal Journal entry worksheet Requisitioned 3,500 square feet of oak and 31 gallons of glue for production. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Journal entry worksheet 12 34 5 6 7 8 15 Incurred and paid payroll costs of $187,900. Of this amount, $46,000 were indirect labor costs; direct labor personnel earned $22 per hour. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Journal entry worksheet K1 2 3 4 56 7 8 15 Paid factory utility bill, $15,230 in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Record entry Clear entry View general journal Journal entry worksheet K2 3 4 5 67 8..15 August's insurance cost for the manufacturing property and equipment was $3,500. The premium had been paid in March. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet K1 2 3 4 5 678.. 15 Incurred $8,500 depreciation on manufacturing equipment for August. Note: Enter debits before credits. Transaction General Journal Debit Credit 9. Record entry Clear entry View general journal 4 5 6 7 8 915 Paid advertising expenses in cash, $5,500. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet K15 6 7 8 9 10 . 15 Incurred and paid other factory overhead costs, $13,500. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet K 6 7 8 9 10 11 15 Incurred and paid miscellaneous selling and administrative expenses, $13,250. Note: Enter debits before credits. Transaction General Journal Debit Credit k. Record entry Clear entry View general journal Journal entry worksheet 7 89 10 11 12... 15 Applied factory overhead to production on the basis of direct labor hours. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet K1 .. 8 9 10 1 12 13.... 15 Produced completed goods costing $146,000 during the month Note: Enter debits before credits. Transaction General Journal Debit Credit m. Journal entry worksheet 8 9 10 11 12 13 14 15 Sales on account in August were $132,000. Note: Enter debits before credits. Transaction General Journal Debit Credit n1. Record entry Clear entry View general journal Journal entry worksheet K1 . 8 9 10 11 12 13 14 15 The Cost of Goods Sold was $112,000. Note: Enter debits before credits. Transaction General Journal Debit Credit n2. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 COGM Req 4 COGS Req 5 Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on August 31 Complete this question by entering your answers in the tabs below. ae Req 1 Req 2 Req 3Req 4 COGM Req 4 COGS Req 5 Prepare a schedule of Cost of Goods Sold. Mooresville Corporation Schedule of Cost of Goods Sold For the Month Ended August 31 Finished goods inventory, beginning Cost of goods manufactured Total goods available for sale Finished goods inventory, ending Cost of goods sold Adjusted cost of goods sold Req 4 COGM Req 5 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 COGM Req 4 COGSReq 5 Prepare the income statement for August. Mooresville Corporation Income Statement For the Month Ended August 31 Total selling&administrative expenses Req 4 COGs Req 5 Req 1 Req 2 Req 3 Req 4 COGM Req 4 COGS Req 5 Prepare a schedule of Cost of Goods Manufactured. Mooresville Corporation Statement of Cost of Goods Manufactured For the Month Ended August 31 ts Direct materials used Total direct materials available Direct materials used Total manufacturing costs incurred during year Total manufacturing costs to account for Cost of goods manufactured Actual overhead Total direct materials available 23 Direct materials used Total manufacturing costs incurred during year Total manufacturing costs to account for Cost of goods manufactured Actual overhead Total factory overhead Total applied overhead

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