Ch15 Case Study Assignment - Part 2 a. Starwood Company purchases $650,000 in materials on account. b. Starwood Company incurs $275,000 in factory labor costs paid in cash. C. Starwood Company's manufacturing overhead consisted of depreciation on equipment for $275,000 and miscellaneous costs of $135,000 incurred on account d. Starwood Company assigns materials to production: $245,000 for Job 101, $190,000 for Job 102, and $105,000 for general use. e. Starwood Company assigns labor to production : $135,000 for Job 101, $95,000 for Job 102, and $45,000 for general use f. Compute applied manufacturing overhead as 200% of direct labor costs. Record entry for applied manufacturing overhead. g. Record entry for completed cost of goods manufactured for Job 101. h. Starwood Company sells Job 101 for $975,000 cash. Record sales entry which includes cost of goods sold for Job 101. i. Record the entry to close-out the over- or under-applied manufacturing overhead amount at the end of the period. 1. Prepare journal entries in proper format for Starwood Company. a. Account Name Debit Credit Starwood Company purchases $650,000 in materials on account. b. Account Name Debit Credit Starwood Company incurs $275,000 in factory labor costs paid in cash. c. Account Name Debit Credit Starwood Company's manufacturing overhead consisted of depreciation on equipment for $275,000 and miscellaneous costs of $135,000 incurred on account d. Account Name Debit Credit Starwood Company assigns materials to production: $245,000 for Job 101, $190,000 for Job 102, and $105,000 for general use. e. Account Name Debit Credit Starwood Company assigns labor to production : $135,000 for Job 101, $95,000 for Job 102, and $45,000 for general use f. Account Name Debit Credit Compute applied manufacturing overhead as 200% of direct labor costs. Record entry for applied manufacturing overhead. g. Account Name Debit Credit Record entry for completed cost of goods manufactured for Job 101. h. Account Name Debit Credit Starwood Company sells Job 101 for $975,000 cash. Record sales entry which includes cost of goods sold for Job 101. i. Account Name Debit Credit Record the entry to close-out the over- or under-applied manufacturing overhead amount at the end of the period. 2. Instructions for Posting (200 to 300 words - 60pts): a. Provide an explanation and example for Direct Labor and Indirect Labor. b. Explain the difference between Actual Manufacturing Overhead incurred and estimated Applied Manufacturing Overhead. c. Describe the Work-in-Process Inventory Account and include: 1- What transactions include a debit to the Work-in-Process Inventory Account. 2- What transactions include a credit to the Work-in-Process Inventory Account. * Upload and attach your completed excel file to your posting. 3. Instructions for Reply to another student (100 to 200 words - 40pts): a. Choose a student to reply to that completed a different part than you did for your posting. * Please remember: A limit of two students allowed to reply to another student's posting. b. Review the other student's journal entry problem and posting to explain: 1- If you would prepare the same or different journal entries for the other student's transactions. 2- Meaningful details of what you learned from the reviewing the other student's posting. *Alternate b.2-: Or you can explain the three main manufacturing costs (product costs) and the two main period costs. Make sure to provide a description and an example for each cost