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During January, the firm began the following production jobs:
A79: 1,000 machine hours
N08: 2,500 machine hours
P82: 500 machine hours
During January, Job numbers A79 and N08 were completed, and job number A79 was sold. The actual manufacturing overhead incurred during January was $26,000.
Required:
Problem 1. Compute the company's predetermined overhead rate for the current year.
Problem 2. How much manufacturing overhead was applied to production during January?
Problem 3. Calculate the over applied or under applied overhead for January.
Problem 4. journal entry to close the balance calculated in requirement (3) into cost of goods sold.
Problem 5. journal entry to prorate the balance calculated in requirement (3) among the WIP inventory, finished goods inventory, and Cost of Goods sold accounts.
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