During the month of January, the following costs were incurred: 2010 Jan 8 Purchased Materials for cash,

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During the month of January, the following costs were incurred: 2010 Jan 8 Purchased Materials for cash, $150,000 Jan 10 Requisition for Direct Materials that were put into production, $100,000 Jan 20 Requisitioned for Indirect Materials that were put into production, $4,000. Jan 23 Direct Labor cost incurred during the period, $60,000 when the labor rate per hour was $5. Jan 25 Indirect labor cost incurred during the month of January is $6,000. Jan 28 Paid factory supervisor’s salaries on account, $18,000 Jan 31 Accrued indirect factory wages, $5,000 Jan 31 Accrued Office Salaries, $7,000 Jan 31 Depreciation on Office Building, $10,000 Jan 31 Depreciation on factory equipment $6,000 The following other information items were made available: Beginning work in process is $20,000 and the ending work in process is $5,000. The beginning finished goods inventory is $100,000. The company sold 80% of the cost of goods available for sale for $600,000 on account. The company uses perpetual inventory system. Instruction: Make necessary journal entries to show the flow of the cost of goods produced and sold. Open “T” accounts for relevant accounts, show the beginning balances where applicable, post all your journal entries to the appropriate accounts. What is the over- or under-appied factory overhead? What is the goods available for sale? Make necessary entry for the disposition of immaterial over- or under-applied factory overhead. ABC had an estimated factory overhead of $600,000 and an estimated direct labor hours of 100,000. The company applies factory overhead, using direct labor hours as the cost driver. During the period, the company incurred $60,000 direct labor cost at a rate of $5 per hour. The actual factory overhead incurred is $80,000. Required: What is the predetermined overhead rate? What is the over- or under-applied factory overhead. Assuming that $50,000, $100,000, and $200,000 were balances found in Cost of Goods sold, Work-in-process, and finished goods, respectively, make necessary entries for the disposal of material under- or over-applied overhead.