Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on...

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Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,550,000 4,350,000 63,000 2,860,000 1,740,000 58,000 828,000 2,160,000 $17,609,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. 1. Determine the company's predetermined overhead application rate. Predetermined overhead rate % 2. Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead. Additions to the work-in-process inventory 3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet. Finished-goods inventory 4. Prepare the journal entry needed to record the year's completed production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record transfer of job cost from work in process to finished goods inventory. Note: Enter debits before credits. Transaction 1 No journal entry required Debit Credit Accounts payable Accounts receivable Accumulated depreciation Cash 5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Compute the amount of under- or overapplied overhead at year-end. < Req 5A Req 5B > 5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Prepare the necessary journal entry to record its disposition. (If no entry is required for a transaction/event, select " required" in the first account field.) View transaction list Journal entry worksheet > 1 Record under- or over applied overhead. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 6. Determine the company's 20x2 cost of goods sold. Finished-goods inventory, Jan. 1 Cost of goods available for sale Unadjusted cost of goods sold Cost of goods sold 7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? Yes No Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 20x1, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours, multiplied by the budgeted direct-labor rate.) Budgeted totals for 20x2 for direct labor and manufacturing overhead are $4,200,000 and $5,544,000, respectively. Actual results for the year follow. Direct material used Direct labor Indirect material used Indirect labor Factory depreciation Factory insurance Factory utilities Selling and administrative expenses Total $ 5,550,000 4,350,000 63,000 2,860,000 1,740,000 58,000 828,000 2,160,000 $17,609,000 Job no. 2077 was completed in January 20x2; there was no work in process at year-end. All jobs produced during 20x2 were sold with the exception of job no. 2143, which contained direct-material costs of $154,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. 1. Determine the company's predetermined overhead application rate. Predetermined overhead rate % 2. Determine the additions to the Work-in-Process Inventory account for direct material used, direct labor, and manufacturing overhead. Additions to the work-in-process inventory 3. Compute the amount that the company would disclose as finished-goods inventory on the December 31, 20x2, balance sheet. Finished-goods inventory 4. Prepare the journal entry needed to record the year's completed production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record transfer of job cost from work in process to finished goods inventory. Note: Enter debits before credits. Transaction 1 No journal entry required Debit Credit Accounts payable Accounts receivable Accumulated depreciation Cash 5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Compute the amount of under- or overapplied overhead at year-end. < Req 5A Req 5B > 5-a. Compute the amount of under- or overapplied overhead at year-end. 5-b. Prepare the necessary journal entry to record its disposition. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Prepare the necessary journal entry to record its disposition. (If no entry is required for a transaction/event, select " required" in the first account field.) View transaction list Journal entry worksheet > 1 Record under- or over applied overhead. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 6. Determine the company's 20x2 cost of goods sold. Finished-goods inventory, Jan. 1 Cost of goods available for sale Unadjusted cost of goods sold Cost of goods sold 7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold? Yes No