West Manufacturing worked on the following jobs in December.
Beginning

Jobs R2100 and D2200 were completed, shipped and invoiced to customers. Estimated total direct labor hours for the year was 44,000 and total estimated manufacturing overhead was $352,000.
Actual manufacturing overhead cost incurred during the year was $375,000. Actual direct labor hours were 45,000. The labor rate for the year averaged $10 per hour. All jobs are billed at 150% o unadjusted manufacturing cost.
Based on the information given:
1. Determine the overhead rate for West Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of December;
3. Prepare the journal entry to transfer and bill the completed items (skip Finished Goods entry).
4. Determine the balance in the Work in Process account at the end of December.
5. Compute the amount of over/underapplied overhead.

Question

West Manufacturing worked on the following jobs in December.
Beginning
 
Jobs R2100 and D2200 were completed, shipped and invoiced to customers. Estimated total direct labor hours for the year was 44,000 and total estimated manufacturing overhead was $352,000.
Actual manufacturing overhead cost incurred during the year was $375,000. Actual direct labor hours were 45,000. The labor rate for the year averaged $10 per hour. All jobs are billed at 150% o unadjusted manufacturing cost.
Based on the information given:
1. Determine the overhead rate for West Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of December;
3. Prepare the journal entry to transfer and bill the completed items (skip Finished Goods entry).
4. Determine the balance in the Work in Process account at the end of December.
5. Compute the amount of over/underapplied overhead.

Quizplus · Accepted Answer

The Answer of West Manufacturing worked on the following jobs in December.
Beginning
 
Jobs R2100 and D2200 were completed, shipped and invoiced to customers. Estimated total direct labor hours for the year was 44,000 and total estimated manufacturing overhead was $352,000.
Actual manufacturing overhead cost incurred during the year was $375,000. Actual direct labor hours were 45,000. The labor rate for the year averaged $10 per hour. All jobs are billed at 150% o unadjusted manufacturing cost.
Based on the information given:
1. Determine the overhead rate for West Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of December;
3. Prepare the journal entry to transfer and bill the completed items (skip Finished Goods entry).
4. Determine the balance in the Work in Process account at the end of December.
5. Compute the amount of over/underapplied overhead.

West Manufacturing Worked on the Following Jobs in December