Exercise 4-31 (Algo) Cost Flows; Applying Overhead [LO 4-3, 4-4, 4-5] Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,682,000 of factory overhead costs and use 58,000 machine hours. Erkens Company recorded the following events during the month of April:

Purchased 210,000 pounds of materials on account; the cost was $4.90 per pound.

Issued 135,000 pounds of materials to production, of which 22,500 pounds were used as indirect materials.

Incurred direct labor costs of $315,000 and $55,000 of indirect labor costs.

Recorded depreciation on equipment for the month, $78,700.

Recorded expired insurance costs for the manufacturing property, $5,000.

Paid $10,000 cash for utilities and other miscellaneous items for the manufacturing plant.

Completed Job H11 costing $9,000 and Job G28 costing $84,500 during the month and transferred them to the Finished goods inventory account.

Shipped Job G28 to the customer during the month. The job was invoiced at 40% above cost.

Used 10,700 machine hours during April.

Required: 1. Compute Erkens Companys predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30.

1 20 points eBook Print References Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 View transaction list Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Help Save & Exit Submit Check my work 3 1 20 points eBook Print References Req 1 Req 2 View transaction list Prepare journal entries to record the events that occurred during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Journal entry worksheet Req 3A Note: Enter debits before credits. Transaction Purchased 210,000 pounds of materials on account; the cost was $4.90 per pound. a. Req 3B General Journal Materials inventory Accounts payable Debit 1,029,000 Credit 1,029.000 Check my work 1 20 points eBook Print References n. Snipped JOD G28 10 the customer auring the monin. The job was invoiced al 40% above cost. i. Used 10,700 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Compute Erkens Company's predetermined Predetermined overhead rate $ Req 3B overhead rate for the year. 29 per machine hour Check my work 3 Chapter 4 homework i 1 20 points eBook Print References Saved Exercise 4-31 (Algo) Cost Flows; Applying Overhead [LO 4-3, 4-4, 4-5] Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $1,682,000 of factory overhead costs and use 58,000 machine hours. Erkens Company recorded the following events during the month f April: a. Purchased 210,000 pounds of materials on account; the cost was $4.90 per pound. b. Issued 135,000 pounds of materials to production, of which 22,500 pounds were used as indirect materials. c. Incurred direct labor costs of $315,000 and $55,000 of indirect labor costs. d. Recorded depreciation on equipment for the month, $78,700. e. Recorded expired insurance costs for the manufacturing property, $5,000. f. Paid $10,000 cash for utilities and other miscellaneous items for the manufacturing plant. g. Completed Job H11 costing $9,000 and Job G28 costing $84,500 during the month and transferred them to the Finished goods inventory account. h. Shipped Job G28 to the customer during the month. The job was invoiced at 40% above cost. i. Used 10,700 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30. Help Save & Exit Submit Check my work