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Exercise $15-17$ Overhead rate; costs assigned to jobs

Shire Company's predetermined overhead rate is based on direct labor cost. Management estimates the company will incur $$747,500$ of overhead costs and $$575,000$ of direct labor cost for the period. During March, Shire began and completed Job $56.$

What is the predetermined overhead rate for this period?

Use the information on the following job cost sheet to determine the total cost of Job $56.$

JOB COST SHEET

Customer's Name Keiser Co$.$ Job No$.56$ Job Description $3$ customized systems

$\backslash$table$[[$Date$,$Direct Materials,Direct Labor,Overhead$],[$Requisition No$.,$Cost,Time$-$Ticket No$.,$Cost,Rate,Amount$],[$Mar$.8,$M$-129,$$$5,000,$T$-306,$$$,,],[,,,700,,],[$Mar$.11,M-142,7,000,T-432,1,250,,],[$Mar$.18,M-167,3,640,T-456,1,250,,],[$Totals$,,,,,,]]$

Exercise $15-18$ Recording transactions in job order costing

Prepare journal entries to record transactions a through $h.$

a$.$ Raw materials purchased on credit, $$90,000.$

b$.$ Direct materials used, $$36,500.$ Indirect materials used, $$19,200.$

c$.$ Direct labor used, $$38,000.$ Indirect labor used, $$12,000.($Record using Factory Wages Payable.$)$

d$.$ Paid cash for other actual overhead costs, $$11,475.$

e$.$ Applied overhead at the rate of $125\%$ of direct labor cost.

f$.$ Transferred cost of jobs completed to finished goods, $$56,800.$

g$.$ Sales of jobs on credit was $$82,000.$

h$.$ Cost of jobs sold was $$56,800.$