Miller Company reports the following for its job order production activities for May.

Miller's predetermined overhead rate is \(150 \%\) of direct labor cost. Job cost sheet information for the three jobs worked on during May follows.

Required
1. Determine the cost for factory overhead, both actual and applied, during May. Compute the amount of any over- or underapplied overhead on May 31.
2. Compute the total cost of (a) each job as of May 31, (b) the May 31 inventories for both Work in Process and Finished Goods, and (c) the cost of goods sold for May.
3. Prepare journal entries for the month to record each part a through \(f\).
a. Materials purchases (on credit), direct materials used, direct labor used, and overhead applied.
b. Actual overhead costs, consisting of indirect materials, indirect labor, and other overhead costs paid in cash.
c. Transfer of each completed job to the Finished Goods Inventory account.

d. Record cost of goods sold.
e. Record sale (on credit) of Job 401 for \(\$ 35,000\).
f. Close any underapplied or overapplied overhead in Factory Overhead to Cost of Goods Sold.
4. Prepare a schedule of cost of goods manufactured for May.

Transcribed Image Text:

Raw materials purchases... Direct materials used. Direct labor...... $16,000 8,450 11,900 Indirect materials. Indirect labor.... Other factory overhead. $5,000 3,500 9,500